American spirit exports to Canada saw a drastic 85% decline in the second quarter of 2025, according to the Distilled Spirits Council of the United States. The council expressed deep concern over this significant drop, attributing it to international consumers shifting away from U.S.-made products amidst ongoing trade tensions.
The report highlighted a substantial decrease in exports to key markets, with a 29% decline to the U.K. and a 23% decrease to Japan. However, the most significant impact was felt in Canada, where exports plummeted below $10 million US in the second quarter of the year. These countries, along with the European Union, accounted for 70% of U.S. spirit exports in the previous year.
The council, representing producers of various spirits like whisky, vodka, rum, and brandy, suggested that the shift in consumer behavior could be a response to perceived unfair U.S. tariffs, prompting them to support local industries or explore non-U.S. alternatives.
Council CEO Chris Swonger emphasized the immediate negative effects of trade tensions on U.S. spirit exports and urged for a resolution to facilitate tariff-free trade with longstanding partners for the industry’s sustained growth.
Prime Minister Mark Carney revealed ongoing negotiations between Canadian and American officials to address tariff issues. Meanwhile, Brown-Forman, the parent company of renowned alcohol brands like Jack Daniel’s and Woodford Reserve, reported a significant 62% decline in sales to Canada in the first fiscal quarter of 2026.
Experts like Robert Huish from Dalhousie University noted the impact of the trade dispute on Canadian consumers, especially major purchasers like the LCBO in Ontario and SAQ in Quebec, leading to bare shelves and a noticeable drop in American spirit sales.
Additionally, the Nova Scotia Liquor Corporation observed a surge in local alcohol sales following the removal of American products, with Nova Scotia spirits and wine sales increasing by 24.2% and 15.1%, respectively. The NSLC also reported a boost in Canadian wine and whisky sales compared to the previous year.
Looking ahead, if the trade conflict is resolved and American alcohol re-enters the market, it is anticipated that some Canadian consumers may continue to support local products out of a sense of national loyalty and as a conscious choice post-trade dispute fallout.