US President Donald Trump’s proposed tariffs on Canada and Mexico have raised concerns about the potential impact on imported whiskey, including Canadian whisky. If implemented, the 25% tariffs could lead to higher prices for American and Canadian drinkers.
Major brands like Don Julio tequila and Jack Daniel’s are expected to become more expensive due to increased costs from tariffs. Analysts estimate a price increase of up to 10% for some products, threatening sales in the already struggling industry.
The US wine and spirits market has seen a decline of 5.5% in volume before tariff measures were announced. With the US pausing tariffs for now, Canada has dropped its retaliatory measures, but experts warn that a shift in demand to cheaper products could hurt sales.
“Given pressures on consumer budgets, such a price increase would likely lead to a shift in demand to cheaper/unimpacted products,” said Fintan Ryan, analyst at Goodbody. “Home-brewed beer or spirits might become more competitive as costs of foreign goods rise.”
The impact of tariffs is expected to be felt across the industry, with some producers seeing an opportunity to boost domestic sales while others struggle to cope with increased costs.
Source: https://www.reuters.com/business/retail-consumer/trump-tariffs-mean-canadian-whisky-importers-may-pass-costs-americans-2025-02-03