The US bourbon industry is preparing for the potential fallout of an escalating trade war between the US and Canada. The conflict began when President Donald Trump imposed tariffs on Canadian goods, which was met by a swift response from Canada with its own tariffs on US imports.
Canadian Prime Minister Justin Trudeau has specifically targeted US-made products, including Kentucky bourbon, in his country’s retaliatory measures. As a result, Ontario Premier Doug Ford has restricted the sale of US-made alcohol within the province, citing $965 million in annual sales and 3,600 products from 35 US states sold through the Liquor Control Board of Ontario.
Distilleries across Kentucky are bracing for the impact of these restrictions, with some expressing concerns about the potential effects on their production processes. Royce Neeley, owner and master distiller at Neeley Family Distillery, believes that tariffs will have a minimal impact on his family’s business but is disappointed by Canada’s decision to remove US-made bourbon from its shelves.
“We’re all businessmen,” Neeley said. “We want to maintain good relationships with our customers. This move will hurt employees and the guys who make the barrels, but we’ll adapt.”
Despite these concerns, Neeley hopes that Canadians won’t have a lasting problem with Kentuckians selling bourbon to their country. The industry is expected to explore opportunities in other international markets, including the EU and unaffected US states.
For now, the US bourbon industry will wait and see how Mexico responds to Trump’s tariffs before making any further decisions.
Source: https://www.lpm.org/news/2025-03-05/ky-bourbon-industry-prepares-to-respond-to-trade-war-between-u-s-and-canada