News

US spirits sales in Canada plunge 66% amid tariff war

23 July 2025 By Ron Emler

Canada’s response to US trade tariffs has led to a sharp decline in American spirits sales, with brands like Jack Daniel’s disappearing from store shelves.

Canada’s response to US trade tariffs has led to a sharp decline in American spirits sales, with brands like Jack Daniel’s disappearing from store shelves.

The Canadian trade association has released data which reveal that the retaliatory action against US President Donald Trump’s 25% tariffs on Canadian imports has seen sales of US-produced spirits slumping by more than half in Canada.

When Trump slapped tariffs of 25% on Canadian products (but not alcohol), Canada replied with penalties of the same value on American goods. Canadian state governments, most of whom operate monopolies over alcohol sales, also removed US alcohol from their shelves.

That embargo remains in place throughout most of the country, although Alberta and Saskatchewan have relaxed it.

Jack Daniel’s among the hardest hit

One of the companies hardest hit was Brown-Forman, owner of the Jack Daniel’s bourbon brands.

At the time, Lawson Whiting, its chief executive, said Canadian provinces removing American alcohol from store shelves was “worse than a tariff” and a “disproportionate response” to levies imposed by Trump.

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Between March 5 and the end of April, sales of US spirits by value in Canada fell by 66.3% compared with the same period in 2024.

Total sales of spirits in Canada fell by 12.8% in value terms, with drinks imported from countries other than the US 8.2% lower. Sales of Canadian-produced spirits were 6.3% down, partially reflecting consumer caution in the face of inflation.

Industry calls for open trade

“The North American spirits sector is highly interconnected, and the immediate and continued removal of all US spirits products from Canadian shelves is deeply problematic for spirits producers on both sides of the border,” said Spirits Canada’s CEO, Cal Bricker.

“The current disruption demonstrates the critical importance of maintaining open, reciprocal trade relationships that benefit consumers, businesses and government revenues in both nations.”