Sales of U.S.-made liquor in Canada have plummeted by over two-thirds in just under two months, as a result of escalating trade tensions and a wave of Canadian consumer backlash, new industry figures reveal.
According to a joint statement released by Spirits Canada and the Distilled Spirits Council of the United States, sales of American spirits in Canada dropped a staggering 66.3 per cent from March 5 to April 30 compared to the same period last year. The sharp decline follows decisions by several Canadian provinces to remove U.S. liquor from store shelves, in protest against tariffs imposed by U.S. President Donald Trump and his inflammatory remarks about annexing Canada.
Collateral Damage in a Cross-Border Trade War
While U.S. products took the biggest hit, total spirits sales in Canada also fell by 12.3 per cent, with Canadian-made spirits dropping 6.3 per cent, and other imported brands seeing an 8.2 per cent decline.
“This kind of disruption shows just how interconnected our markets are,” said Cal Bricker, president and CEO of Spirits Canada. “Removing U.S. spirits entirely from Canadian shelves is damaging to producers, retailers, and consumers on both sides of the border.”
Despite a modest rebound in April — with Canadian spirits rising 3.6 per cent and non-U.S. imports increasing 3.7 per cent — the market failed to recover from March’s steep losses. Overall, spirits sales in April remained 3.3 per cent lower than last year, equating to a $13.9 million revenue shortfall.
U.S. Industry Calls Out ‘Worse Than a Tariff’
Some U.S. producers have sharply criticized the Canadian response, saying the removal of their products amounts to economic retaliation that surpasses the impact of tariffs.
“That’s worse than a tariff,” said Lawson Whiting, CEO of Jack Daniel’s producer Brown-Forman, during a post-earnings call. “It’s literally taking your sales away and erasing our presence from retail shelves.”
Chris Swonger, CEO of the U.S. Distilled Spirits Council, echoed those concerns, calling the bans “needless” and “harmful” to both provincial revenues and Canadian hospitality businesses.
‘Mean and Nasty’: Diplomatic Fallout Grows
Public sentiment in Canada appears to be hardening. A recent Ipsos poll for Global News found 72 per cent of Canadians are now actively avoiding American-made goods, and 77 per cent say their opinion of the U.S. has worsened due to President Trump’s attacks on Canadian sovereignty.
Trump’s ambassador to Canada, Pete Hoekstra, stirred controversy this week by labeling Canadians as “mean and nasty” during remarks in Washington State, blaming provincial bans and declining cross-border travel.
“That’s their business,” Hoekstra said. “They want to ban American alcohol, that’s fine. But it doesn’t send a great message about treating us well.”
In a follow-up to Global News, the U.S. Embassy in Canada defended the ambassador’s comments, saying they were made in response to a question at a regional conference and meant to highlight concerns about deteriorating bilateral ties. Still, the embassy added that Hoekstra “emphasized his optimism about the future of the U.S.-Canada relationship.”
Canadian Officials Encourage Staying Local
In British Columbia, Premier David Eby responded defiantly, encouraging residents to double down on buying Canadian and vacationing domestically.
As political rhetoric intensifies and trade actions continue to ripple through consumer markets, the liquor sector may be just one of many industries caught in the crossfire — with no sign yet of the standoff easing.
