Kentucky Bourbon Makers Push Back Against Canada’s Trade Retaliation
Kentucky bourbon industry is voicing strong concerns over Canada’s decision to pull US-made alcohol from store shelves in response to tariffs imposed by President Donald Trump, Business Insider reports.
Several Canadian provinces, including Ontario, New Brunswick, and Quebec, have instructed their government-affiliated liquor retailers to stop purchasing or selling American spirits, including bourbon, which is largely produced in Kentucky.
The move follows Trump’s recent implementation of 25% tariffs on goods from Mexico and Canada. In response, Canadian Prime Minister Justin Trudeau announced retaliatory tariffs on $155 billion worth of American goods, including alcoholic beverages.
The Kentucky Distillers’ Association (KDA) has warned that these trade restrictions could have long-term consequences for the state’s bourbon industry, which produces 95% of the world’s bourbon. Eric Gregory, KDA’s president, said in a statement that the measures would “jeopardize growth for years.”
Canada has been a major market for Kentucky bourbon, with $43 million worth of whiskey exported to Canada in 2023. At the same time, Kentucky imported $40.3 million worth of Canadian whiskey. Paul Coomes, an economist at the University of Louisville, previously noted that Canada was the largest importer of Kentucky-made spirits in 2022.
Industry leaders have expressed frustration over Canada’s decision, arguing that removing US spirits from shelves is an excessive response to Trump’s tariffs. Lawson Whiting, CEO of Brown-Forman, the parent company of Jack Daniel’s, called the move “worse than a tariff” and described it as a “disproportionate response.”
Trump originally announced his 25% tariffs in early February but delayed them by a month after negotiations with Mexico and Canada over border security. The tariffs ultimately took effect this week, prompting Canada’s swift countermeasures.
As tensions rise, bourbon makers worry about the long-term impact on trade relations and the industry’s growth. Whether the two countries can reach a resolution remains to be seen, but for now, Kentucky distillers are bracing for economic fallout.
