Boycott of U.S. spirits saw 63% drop in exports to Canada
· Toronto Sun
American exports of spirits to Canada saw a huge drop last year after the United States launched a trade war with its northern neighbours.
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Chris Swonger, President and CEO of the Distilled Spirits Council of the U.S. (DISCUS), testified last week at the Section 301 Committee , an agency under the Office of the U.S. Trade Representative Jamieson Greer, that he supported U.S. President Donald Trump’s objective to increase U.S. manufacturing and exports.
However, he urged trade officials to exempt distilled spirits from any current or future tariffs after exports to Canada fell dramatically in 2025.
“When the EU (European Union) imposed tariffs on American whiskeys between 2018 and 2021, exports dropped 20% and rebounded by 60% once the tariffs were suspended,” he said at the hearing investigating U.S. trade deficits.
“More recently, retaliatory sales bans on U.S. spirits sales in most Canadian provinces led to a 63% drop in exports to Canada in 2025.”
Retaliatory measures
With the exception of Alberta and Saskatchewan, most Canadians cannot buy American booze following import bans as part of retaliatory measures by other provinces over debilitating tariffs placed on goods heading south of the border — namely steel, aluminum, lumber and automobiles.
Greer recently said the U.S. might have to take action against Canada following the booze ban.
“There are two countries that have retaliated economically against the United States in the past year: the People’s Republic of China and Canada,” Greer told a congressional hearing last month .
“My sense is there may have to be an enforcement action to deal with this issue on wine and spirits in Canada.”
He didn’t specify what actions may be taken by the Trump administration.
Ford defended alcohol ban
Ontario Premier Doug Ford defended the ban on American alcohol imports as a result of the tariffs on Canadian products, saying they will only be lifted when the trade war finally ends.
“As soon as President Trump drops the tariffs on our steel, aluminum, dairy, lumber,” Ford told CBS News last month .
Swonger said tariff reductions on U.S. spirits in India, Argentina, Cambodia, Ecuador, Indonesia, Malaysia, Turkey, Switzerland, and Taiwan has benefitted American distillers and farmers, which generates more than $250 billion in economic activity and supports approximately 1.7 million U.S. jobs.
However, his industry is facing “significant economic headwinds,” with domestic sales down 2.2% and exports falling nearly 4%.
Consumers driving spirits trade deficit
According to Swonger, consumer choice is driving the U.S. spirits trade deficit and not unfair trade practices.
“A slowdown in the spirits market, combined with ongoing trade frictions, has started to result in year-over-year job losses at U.S. distilleries,” he told the committee.
According to the U.S. Bureau of Labor Statistics data, American distilleries lost 3.5% of their workforce — nearly 1,000 jobs — from September 2024 to September 2025.
Swonger said even the threat of tariffs creates uncertainty, which negatively impacts American spirit exports.
“The EU has repeatedly suspended planned retaliatory tariffs on U.S. spirits and has now extended that suspension until August 2026,” he said. “That uncertainty alone contributed to a 3% decline in U.S. spirits exports to the EU.”