The Louisville Courier-Journal reported on Saturday that the bourbon world breathed a sigh of relief when news broke out that the government ended Canadian tariffs against bourbon. Members of the Kentucky Distillers’ Association, in particular, praised the Canadian Prime Minister’s decision to remove the punitive tariffs placed on America’s native spirit.
“We applaud Prime Minister Mark Carney’s decision to restore reciprocal zero-to-zero tariffs for Kentucky Bourbon and many other remaining goods covered under the USMCA,” a statement from Kentucky Distillers’ Association President Eric Gregory read on X. “We hope this action will jump start negotiations on a permanent trade deal, benefiting both American businesses and Canadian consumers seeking to enjoy America’s only native spirit.”
According to the outlet, Canadian tariffs against American cars, steel, and aluminum remain in place for now, and the news of the zero-to-zero spirits tariffs might signify a future trade deal.
A Greater Threat to Bourbon
Yet according to some professionals within the industry, the real problem is the ban some provinces have imposed against American whiskey during the Trump administration’s first round of tariffs.
Canada might just be one of the most lucrative markets for American whiskey, and a bourbon ban in major provinces like Quebec and British Columbia has roiled the industry, causing brands like Michter’s to lose $115,000 in its early stages, according to NBC News.
Michter’s President Joseph Magliocco spoke with CNBC, expressing that the ban was particularly destructive to American whiskeys — significantly more so than the tariffs. Whether the zero-to-zero tariffs will have any impact on the ban remains unclear.
American bourbon brands aren’t the only ones having issues with the ban, Canadian bars and liquor shops are struggling as well.
“The unfortunate decision to remove American spirits from Canadian retail shelves is not only harming U.S. Distillers, but it’s also needlessly reducing revenues for the provinces, and placing unnecessary burdens on Canadian consumers and hospitality businesses,” President and CEO of the Distilled Spirits Council (DISCUS) Chris Swonger said, according to the outlet.
Canadian bar owners like John Rafferty shared that they, too, struggled with Canada’s bourbon ban. As soon as they knew American whiskey was being pulled from shelves in major markets like Toronto, they had to prepare. In March, Rafferty went ahead and “went nuts,” purchasing six cases of large-format bottles of American bourbon so he could still offer it to his customers.
At present, Rafferty is down to four large bottles of American bourbon, including two bottles of Jim Beam, a bottle of Jack Daniel’s and a bottle of Bulleit. Perhaps he’ll be able to replenish his supply if negotiations continue.
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