US trade group says US spirits exports to Canada have declined 85%
US spirits exports to Canada are expected to “decline” by 85 per cent in the second quarter of 2025, with the Distilled Spirits Council of the United States calling the situation “very troubling” as consumers in key international markets are opting for US-made products amid trade tensions.
The numbers come like this American wine remains largely off Canadian shelves and unavailable in bars and restaurants as a response to US President Donald Trump’s decision to impose tariffs On Canadian freight in early March,
one in The report was released earlier this weekExports to the UK and Japan fell by 29 per cent and 23 per cent respectively, but the biggest declines were to Canada, the council said. These countries, along with the European Union, This would account for 70 percent of US spirits exports in 2024.
The council represents producers of spirits such as whiskey, vodka, rum and brandy.
“This shift may reflect a widespread sentiment that U.S.-imposed tariffs are unfair, leading consumers to support their domestic industries or seek out non-U.S. products,” the council wrote in a report.
In a news release, council CEO Chris Swonger said trade tensions There is an immediate and adverse impact on American spirits exports.
“We urge the President to help facilitate a permanent return to tariff-free trade with our longtime trading partners to ensure the continued growth and vitality of this great industry,” he said.
The council did not respond to an interview request by deadline.
On Wednesday, Prime Minister Mark Carney said Canadian and U.S. officials Negotiating the terms of the agreement on tariffs.
In late August, Brown-Forman, parent company of alcohol producers such as Jack Daniel’s and Woodford Reserve, said Sales in Canada fell 62 percent During the first fiscal quarter of 2026, which ended July 31.
In a conference call with investors in August, Brown-Forman CEO Lawson Whiting said the trade dispute had caused “significant headwinds.”
He said at the time, “While our non-US brands such as Diplomatico and El Jimador continued to grow, they were not able to offset the decline of our brands produced in the US.”
Robert Huish, an associate professor at Dalhousie University in Halifax who specializes in international affairs and tariffs, is not surprised by the decline in U.S. spirits exports to Canada.
“Some of the largest single buyers of spirits from the US are Canadian: the LCBO in Ontario and the SAQ in Quebec,” he said. “They’re also big buyers of American spirits and certainly American wines, so seeing shelves empty will definitely have an impact.”
Nova Scotia sees a surge in local liquor sales
Nova Scotia Liquor Corporation, the Crown corporation that is the province’s largest liquor retailer, says removing American products from shelves has increased sales of local products.
From March 4 to September 15, sales of Nova Scotia spirits products and wines increased 24.2 per cent and 15.1 per cent respectively compared to the same period a year earlier.
Olivia Giffen, vice-president of marketing and retail at Nova Scotia spirits and beer maker Coldstream Clear, said its spirits sales have increased significantly.
“I think with everything going on, people were really looking for, ‘Okay, what products can I pick up now that are local?’ And making a conscious decision to find products that still taste what they really like, but a big bonus is that it’s local,” she told CBC. information morning recently.
Canadian wine and whiskey are seeing a boom
The NSLC also said sales of Canadian wine and whiskey were up 8.9 per cent and 8.5 per cent respectively from a year earlier.
Assuming the trade dispute is resolved and American wine becomes widely available again, Huish expects some Canadian consumers will continue to buy Canadian wine.
He said, “As we are hearing day after day, feelings are still hurt and many Canadians are in a position to think that relations with the United States are not going back.” “And so rather than looking for a product for the sake of convenience, there will be a conscious choice of national loyalty coming into the equation.”
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