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Canada Battles US Tariffs And Prepares For Economic Impact
(Artur Widak/Getty Images)
whiskey sours

American booze is getting pulled off the shelves in Canada. How bad could that be?

The US exported more than $768 million worth of alcohol to Canada in 2024.

J. Edward Moreno

American booze is now off the shelves in most of Canada, threatening to put a $768 million dent in the US economy.

Canadian provinces — including Ontario, Quebec, and British Columbia — have announced that they will halt or restrict US liquor sales in response to the 25% tariffs the US imposed on Canada and Mexico. Canadian provinces have more authority over the alcohol business than US states, with some provincial governments having full or partial monopolies on retail alcohol sales.

While booze makes up a smaller chunk of the economy than other goods, an outright ban on sales packs a more direct punch than tariffs, which are taxes on imports.

“That’s worse than a tariff because it’s literally taking your sales away,” Lawson Whiting, CEO of Jack Daniel’s maker Brown-Forman, told analysts on Wednesday. “It’s disappointing that some of our consumers aren’t going to be able to get our bottles of Jack Daniel’s up there, because it’s a big brand in Canada.”

Whiting also said that Canada makes up about 1% of its sales.

The US alcohol industry is concentrated in certain pockets of the country.

The majority of whiskey exported from the US, for example, comes from Kentucky and Tennessee. That includes Brown-Forman’s crown jewel, Jack Daniel’s, as well as some brands owned by Diageo like Bulleit Bourbon and George Dickel. (Diageo also sells Crown Royal whiskey from Canada and Don Julio tequila from Mexico, so its taking punches from all sides of this trade war.)

Most wine produced and exported from America comes from California. Brands like Robert Mondavi are sold by Constellation Brands, though its biggest trade war liability is Modelo, which it imports from Mexico and is the most-sold beer in the US.

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