Canada is buying 85% less U.S. booze than last year amid trade war: report

'This shift may reflect a broader sentiment that U.S.-imposed tariffs are unfair,' the report noted in its assessment of falling exports around the globe.

Exports of American alcohol products have seen a “significant downturn” amid “ongoing trade tensions,” a U.S. distillers trade group says in a new report, with Canadian exports plummeting far more than any other international market.

The mid-year report from the Distilled Spirits Council, released Monday, says U.S. booze exports to Canada are down a staggering 85 per cent in the second quarter compared to the year before, falling below US$10 million.

By comparison, exports to both the United Kingdom and Japan are down just 23 per cent, while exports to the European Union fell by 12 per cent.

“This trend presents a growing challenge for the U.S. spirits industry,” the report says. “International consumers appear increasingly inclined to substitute U.S. spirits with domestic alternatives or imports from other countries.

“This shift may reflect a broader sentiment that U.S.-imposed tariffs are unfair, prompting consumers to support their domestic industries or seek non-U.S. products in response.”

Provinces and territories pulled American alcohol products from government-run liquor store shelves in early March in retaliation after U.S. President Donald Trump first imposed his sweeping tariffs on Canada. Liquor boards also stopped ordering new U.S. product.

Although Alberta and Saskatchewan have since lifted their moratoriums, the other provinces and territories told Global News in August they are either keeping unsold American products in storage or allowing stores to sell through their inventories.

Some liquor boards confirmed they won’t order more U.S. alcohol until the U.S.-Canada trade war is resolved.