July 22 – A recent move by several Canadian provinces to halt the sale of U.S-made spirits in retail liquor stores has resulted in a steep decline in not only American alcohol imports but also in overall spirits sales across the country. The decision, sparked by trade tensions with the United States, has been met with concern from industry professionals who warn of broader economic consequences.
According to a recent analysis by Spirits Canada, the national association representing Canadian producers and marketers of distilled spirits, Sales of American-made spirits in Canada plummeted by 66.3% from March 5 through the end of April. This steep fall occurred shortly after provincial liquor boards announced they would stop carrying American-made products in response to a trade policy shift from the United States government.
In addition to the plunge in U.S. spirits sales, overall spirits consumption in Canada saw a notable decline. The trade group reported that total spirits sales across the country decreased by 12.8% over the same period. This drop is seen as a ripple effect stemming from the removal of a major category of imported products, which has disrupted consumer buying patterns and affected domestic brands as well.
Cal Bricker, President and CEO of Spirits Canada, emphasized the challenges this boycott poses for both Canadian and American businesses. “North America’s liquor industry relies heavily on cross-border ties, and pulling U.S. spirits from Canadian store shelves so abruptly has caused major challenges—not only for American distillers, but also for Canadian distributors, buyers, and the hospitality sector,” he said.
The decision to halt U.S. spirit sales came in response to tariff actions introduced by American officials, including a 25% duty on select goods. Tensions have since intensified with the U.S. warning it may introduce a 35% tariff on Canadian products starting August 1. The looming threat of an intensified trade conflict has led to the emergence of a strong “Buy Canadian” movement, with many Canadian consumers and businesses actively avoiding American products.
This consumer movement, while patriotic in nature, has had unintended economic consequences. Liquor store shelves in provinces such as Ontario, Alberta, and Saskatchewan were notably affected. Ontario, which is Canada’s largest market for distilled spirits, witnessed an 80% drop in American spirit sales after products were removed. Though Alberta and Saskatchewan have since reinstated U.S. spirits in their liquor outlets, the industry has not yet seen a rebound to previous sales levels.
The impact is not limited to retail shelves. Hospitality venues such as bars, restaurants, and hotels are feeling the pressure too. With fewer American products available, and a decline in overall consumer demand for spirits, many establishments are seeing reduced customer engagement and are having to rethink their product offerings.
U.S. producers have also voiced their discontent. One major American distiller, the company behind the popular Jack Daniel’s brand, publicly criticized Canada’s decision to ban American bourbon and whiskey as an excessive reaction. The company argued that such a move had an even greater impact than any retaliatory tariffs and unfairly penalized producers who had no control over trade policy.
Trade between the two countries had been functioning under the terms of the U.S-Mexico-Canada Agreement (USMCA), which was designed to ensure fair and free trade in North America. Under the agreement, spirits made in Canada avoid U.S. tariffs as long as they adhere to the terms set within the trade framework. Nonetheless, political developments in Washington have placed this framework under strain.
Leaders in the industry warn that continued trade tensions could lead to long-term damage. Canadian distillers rely heavily on cross-border trade and supply chains. From bottle manufacturing to marketing and distribution, collaboration between the two nations has long been essential to the sector’s success. Disrupting this balance not only threatens jobs and revenues in both countries but may also create long-term challenges in rebuilding trust and market share.
Consumer behavior is shifting as well. The removal of popular American brands has led to increased attention on domestic and other international products, but the market has not yet adapted fully. Retailers and importers face the dual challenge of managing inventory while attempting to appeal to consumers whose preferences may have changed suddenly.
Despite the partial reintroduction of U.S. spirits in some provinces, the overall sentiment remains uncertain. Industry leaders are calling on both countries to reevaluate their positions and find common ground to ease the growing trade conflict. For the Canadian alcohol industry, the stakes are high. Without swift policy resolution, experts fear the decline in sales could become a long-term trend that damages producers, retailers, and consumers alike.