WASHINGTON: American spirit exports to Canada saw a sharp decline, registering an 85% drop in the second quarter of 2025, according to a U.S. trade organization. The significant reduction is a direct consequence of widespread boycotts and the removal of U.S. liquor from Canadian shelves and bars, a retaliatory response to tariffs imposed by U.S. President Donald Trump on Canadian products.
The figures were revealed in a report released by the Distilled Spirits Council of the United States (DISCUS). Beyond Canada, the report also highlighted decreases in exports to other key markets, with shipments to the UK and Japan falling by 29% and 23%, respectively. These three nations collectively accounted for 70% of U.S. spirit exports in 2024.
Major corporations have felt the impact of the trade dispute. Brown-Forman, the parent company of brands like Jack Daniel’s and Woodford Reserve, reported a 62% decline in sales to Canada during the first quarter of its fiscal year 2026 (ending July 31).
DISCUS analysis suggests that a public sentiment deeming the U.S. tariffs unfair is motivating consumers to support their domestic industries and actively seek out non-U.S. alternatives. The Council expressed significant alarm, noting that consumers in vital international markets are replacing U.S. products with substitutes.
Meanwhile, Canada’s domestic beverage industry has seen a corresponding boost. NSLC (Nova Scotia Liquor Corporation, often used as a regional indicator for Canadian trends) reported that sales of domestically produced wine and whisky increased by 8.9% and 8.5% respectively, compared to the previous year.
