Kentucky’s bourbon makers are feeling the heat from Canada’s recent response to Donald Trump’s tariffs. Canada is a major buyer of Kentucky whiskey, and tensions are rising as some provinces have decided to pull American-made alcohol off their shelves.
Since the tariffs went into effect, Canadian Prime Minister Justin Trudeau announced plans to impose a retaliatory 25% tariff on $155 billion worth of U.S. goods. This move has sparked action in several provinces. For instance, Ontario has instructed its Liquor Control Board to stop selling U.S. alcohol immediately. Similarly, New Brunswick and Quebec have followed suit, ceasing purchases of U.S. alcohol products and removing them from their stores.
Eric Gregory, president of the Kentucky Distillers’ Association, expressed serious concerns about these actions. He warned that Canada’s decision could severely impact the growth of Kentucky’s bourbon industry, which produces 95% of the world’s bourbon.
Before all this unfolded, Canada was Kentucky’s largest export market for spirits. In fact, in 2023, Kentucky exported about $43 million in whiskey to Canada, while Kentucky imported $40.3 million worth of Canadian whiskey. This trade relationship was crucial for both regions.
Lawson Whiting, CEO of Brown-Forman, the company behind Jack Daniel’s, also criticized Canada’s response, calling it “worse than a tariff.” He pointed out that Canada only accounted for 1% of their total sales, while the U.S. made up 45%.
Trade tensions are complicated and can lead to unexpected consequences for businesses and consumers alike. With both sides feeling the impact, it’s clear that the situation will continue to develop, affecting various aspects of trade and commerce.
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