U.S. Whiskey Exports to Canada Drop 70 Percent

American whiskey producers remain excluded from most Canadian provincial markets following the failure of trade negotiations between Donald Trump and Prime Minister Kearny. The trade rift has caused a severe decline in exports, with U.S. spirit shipments to Canada falling roughly 70 percent between March and December 2024, dropping from $203 million to $60 million.

While U.S. spirits exports grew by 2.5 percent in other global markets, the Canadian dispute has disrupted the broader U.S. supply chain, affecting grain farmers and coopers. Michael Bilello, president and CEO of the American Whiskey Association, noted that the industry faces a complex recovery process. Even if a federal agreement is reached, producers must still secure alignment from provincial liquor boards to regain shelf access.

The industry also faces a shift in consumer behavior, as some Canadian buyers have moved toward domestic products during the ongoing dispute. The American Whiskey Association continues to seek a breakthrough to restore access to the Canadian market.