American spirit exports to Canada drastically declined by 85% in the second quarter of 2025, causing concern for the Distilled Spirits Council of the United States due to shifting consumer preferences in response to trade tensions. The council’s recent report highlighted a significant drop in exports to key markets such as the U.K. and Japan, but the most substantial decrease was observed in Canada, a market that accounted for a significant portion of U.S. spirit exports in 2024.
The council, representing producers of various spirits including whisky, vodka, rum, and brandy, attributed this decline to the perceived unfairness of U.S.-imposed tariffs, leading consumers to support domestic industries or opt for non-U.S. products. Sales to Canada fell below $10 million US in the second quarter, prompting the council to emphasize the detrimental impact of trade tensions on U.S. spirit exports.
Council CEO Chris Swonger expressed urgency in resolving the tariff issues to ensure the industry’s growth and vitality. Meanwhile, ongoing negotiations between Canadian and American officials aim to address these trade disputes.
The repercussions of the trade tensions were evident in the first fiscal quarter of 2026, with Brown-Forman, the parent company of well-known alcohol brands like Jack Daniel’s and Woodford Reserve, reporting a 62% decline in sales to Canada. The company highlighted the challenges faced due to the trade dispute, affecting U.S.-produced brands disproportionately compared to non-U.S. brands.
Robert Huish, an expert in international affairs and tariffs from Dalhousie University, noted the significant impact on Canadian liquor sales, especially from major purchasers like the LCBO in Ontario and SAQ in Quebec. As a result of the removal of American products from shelves, Nova Scotia experienced an increase in sales of local spirits and wines, reflecting a shift towards supporting domestic products.
The NSLC reported a notable rise in Canadian wine and whisky sales compared to the previous year, indicating a potential long-term shift in consumer preferences even if the trade dispute is resolved. Huish suggested that national loyalty could influence consumer choices, leading to continued support for Canadian products despite the availability of American alcohol in the future.