{"id":205302,"date":"2025-10-06T16:45:20","date_gmt":"2025-10-06T16:45:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/205302\/"},"modified":"2025-10-06T16:45:20","modified_gmt":"2025-10-06T16:45:20","slug":"canadian-cold-shoulder-american-distilled-spirits-exports-to-canada-plunge-amid-trade-tensions","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/205302\/","title":{"rendered":"Canadian cold shoulder: American distilled spirits exports to Canada plunge amid trade tensions"},"content":{"rendered":"

American distillers have gotten a costly cold shoulder from Canada, where their exports plunged 85% earlier this year \u2014 topping broad declines in key international markets amid global trade tensions<\/a>, a spirits industry group said Monday.<\/p>\n

Even a thaw in trade relations may not shake this hangover right away.<\/p>\n

\u201cEven though things have eased up, we still are not back on the shelf in Canada,\u201d said Kentucky craft distiller Tom Bard. \u201cProbably won\u2019t be for a good long while.\u201d<\/p>\n

The majority of Canadian provinces continue to ban American spirits from shelves, though Canada removed its retaliatory tariff<\/a> on the products weeks ago, the Distilled Spirits Council of the United States said. There\u2019s another nagging concern \u2014 that consumer reaction to the trade conflicts<\/a> could curb the international thirst for American spirits in key markets.<\/p>\n

Overall exports of American spirits fell 9% in the second quarter of 2025 compared to a year ago, the council said in its new report. Sharp declines occurred in other crucial markets \u2014 the European Union, United Kingdom and Japan, it said. That comes on the heels of a banner year for U.S. spirits exports in 2024, the council said. Total first-quarter exports in 2025 edged up by 1% from a year ago.<\/p>\n

In the ultracompetitive spirits world, the sudden drop-off is a dispiriting development for U.S. distillers.<\/p>\n

\u201cThere\u2019s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands,\u201d Chris Swonger, the council\u2019s CEO, said Monday in a release.<\/p>\n

Canada remains the only key trading partner that retaliated against U.S. spirits in the latest rounds of trade conflicts spurred by President Donald Trump\u2019s tariff policies. The president maintains that open trade cost the U.S. millions of factory jobs and that tariffs are the path to American-made prosperity.<\/p>\n

But American distilled spirits have been a high-profile target for retaliation. <\/p>\n

Trump\u2019s first-term tariffs on European steel and aluminum spurred the EU to retaliate with a tariff that caused American whiskey exports<\/a> to the EU to plunge, costing distillers<\/a> more than $100 million in revenue from 2018 to 2021, the council has said. Once the tariff was suspended, EU sales rebounded for American distillers \u2014 until the latest tensions resurfaced in the first year of Trump\u2019s second term.<\/p>\n

The Distilled Spirits Council is pressing for free-flowing trade for distilled spirits with zero-for-zero tariffs with key markets, saying it would give American distillers the certainty they need. <\/p>\n

Global markets are increasingly vital for producers of American whiskey \u2014 which includes bourbon, Tennessee whiskey and rye whiskey. The sector faces a supply-and-demand crunch in the U.S., where a sales slowdown<\/a> is coinciding with massive stockpiles of whiskey, the council said.<\/p>\n

\u201cWith the slowdown in the U.S. market, it\u2019s more important than ever for American distillers to have reliable access to international markets,\u201d Swonger said. \u201cUntil these trade issues are fully resolved, many distillers are remaining on the sidelines, fearful that without a permanent return to zero-for-zero tariffs, they could once again face retaliatory tariffs. They simply don\u2019t want to risk jeopardizing the investments they\u2019d need to make to reestablish their presence abroad.\u201d <\/p>\n

The most dramatic quarterly drop off in exports occurred in Canada, where U.S. spirits exports fell below $10 million amid the 85% plunge in the April-through-June quarter, the report showed.<\/p>\n

Elsewhere, exports of American spirits to the European Union \u2014 the U.S. industry\u2019s largest export market \u2014 fell 12% in the second quarter, the council said. Exports to the United Kingdom dropped 29% and exports to Japan decreased 23%, it said.<\/p>\n

The pain was felt across a range of spirits categories, with quarterly declines of 13% for American whiskey, 14% for vodka, 15% for cordials and 12% for brandy, it said.<\/p>\n

The declines were softened somewhat by surging sales to other countries \u2014 including Mexico, Australia, Brazil, Singapore and South Korea, the council said.<\/p>\n

Distilled spirits were exported from 43 states last year, with Tennessee and Kentucky ranking first and second, respectively, the report said. Texas was third, followed by Florida and Indiana.<\/p>\n

Large and small producers alike are feeling the pinch<\/a> from trade conflicts.<\/p>\n

In August, Brown-Forman Corp. reported a 3% drop in first-quarter net sales, but company CEO Lawson Whiting said it is positioned for \u201cresilient results in the face of persistent headwinds.\u201d It posted double-digit net sales drops in Germany and the United Kingdom and a nearly 60% decline in Canada. Brown-Forman produces such brands as Jack Daniel\u2019s Tennessee Whiskey and Woodford Reserve bourbon. <\/p>\n

But large distillers possess the capital and market reach to ride out disruptions caused by trade disputes \u2014 built-in luxuries that most small producers don\u2019t have.<\/p>\n

For Bard, the trade tensions abruptly halted his momentum in securing and expanding his foothold in Canada. He and his wife, Kim, own The Bard Distillery in western Kentucky. Their brands include Muhlenberg and Cinder & Smoke bourbons.<\/p>\n

At the start of 2025, their products were sold in British Columbia and Alberta, and they were in talks to expand to other Canadian provinces. The plan was to ship more than 1,000 cases \u2014 mostly bourbon along with flavored whiskeys and cream liqueurs \u2014 north of the border this year, perhaps turning their Canadian business into 15% to 20% of overall sales in 2025.<\/p>\n

It was an ambitious plan for a small distiller, but it evaporated amid the trade conflict and Canadian backlash to Trump\u2019s repeated comments that their country should be the 51st U.S. state<\/a>.<\/p>\n

The Bards haven\u2019t been able to offset those losses in the U.S. They\u2019re in the early stages of trying to break into other countries, he said, but that takes time. In the meantime, they\u2019ve left two production jobs unfilled, mostly because of lost revenue from Canada, he said.<\/p>\n

Reclaiming lost market share is never easy and he\u2019ll have to \u201cstart from square one,\u201d Tom Bard said.<\/p>\n

\u201cI would say it will be next year and we will have to physically go up there and spend a lot of time trying to get back on the shelf,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"American distillers have gotten a costly cold shoulder from Canada, where their exports plunged 85% earlier this year…\n","protected":false},"author":2,"featured_media":205303,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[118071,28,103,118069,3827,12,109,1076,793,962,3139,569,8639,118070,8879,118068,795],"class_list":["post-205302","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-brown-forman-corp","tag-business","tag-canada","tag-chris-swonger","tag-domestic-news","tag-donald-trump","tag-economic-policy","tag-europe","tag-general-news","tag-government-policy","tag-international-trade","tag-kentucky","tag-ky-state-wire","tag-lawson-whiting","tag-tariffs-and-global-trade","tag-tom-bard","tag-u-s-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/205302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=205302"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/205302\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/205303"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=205302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=205302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=205302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}