Industry Groups Urge Progress In U.S.-Canada Trade Talks
July 23, 2025Sales of U.S. spirits in Canada have plummeted in recent months following widespread destocking of American products in the country, which resulted after the U.S. ratcheted up trade tensions with its northern neighbor.
According to data from the Distilled Spirits Council of the U.S. (DISCUS) and Spirits Canada, sales of U.S. spirits in Canada dropped 66% in March and April, dragging the entire Canadian spirits market down 13%.
The effect was more pronounced in Ontario, Canada’s largest spirits market, which saw an 80% decline in U.S.-made spirits sales in March and April, and an overall drop of 20%—also including a 12.8% decrease for Canadian spirits.
Overall, sales of spirits in Canada improved in April but were still down 3.3%, dropping by over $14 million to just over $400 million. Last year, the U.S. imported $621 million worth of Canadian spirits, while Canada imported $221 million worth of U.S. spirits.
Canadian provinces’ removal of American products from shelves in early March came after the U.S. imposed 25% tariffs on Canadian goods, then subsequently paused them for products under the USMCA trade agreement, which covers Canada-made spirits. Two provinces, Alberta and Saskatchewan, have since returned U.S. spirits to their shelves.
“It’s time to put American spirits back on the shelves throughout Canada,” said Chris Swonger, president and CEO of DISCUS. “This data makes clear that the decision by Canadian provinces to pull American spirits products off their store shelves is not only harming American distillers, but it’s needlessly reducing revenues for the provinces and hurting Canadian consumers and hospitality businesses.”
While DISCUS and Spirits Canada are urging lawmakers to reach a deal to end the tariffs, the Trump administration continues to saber-rattle on the trade front, threatening to raise U.S. tariffs on all Canadian products to 35% on August 1.
Tagged : Canada Spirits, DISCUS, Tariffs