President Donald Trump addresses a joint session of Congress in the House Chamber of the U.S. Capitol on Tuesday. (Photo: Tom Williams/CQ Roll Call via AP Images)
The Kentucky Distillers’ Association on Tuesday issued a message warning that the latest suite of tariffs placed on Mexican and Canadian goods will have an “unjust” effect on the bourbon industry. The announcement came hours after President Donald Trump followed through on his much-discussed 25% tariff plan, one that has already resulted in the removal of American alcohol from thousands of liquor store shelves across Canada.
“Unfortunately, the return of retaliatory tariffs on American whiskey will have far-reaching consequences across Kentucky, home to 95% of the world’s Bourbon,” Kentucky Distillers’ Association President Eric Gregory wrote. “This means hard-working Americans — corn farmers, truckers, distillery workers, barrel makers, bartenders, servers and the communities and businesses built around Kentucky bourbon will suffer.”
The effect of retaliatory tariffs — potentially reaching into the billions of dollars — will only be quantified in the weeks and months to come. In the meantime, distributors like the Liquor Control Board of Ontario have already taken drastic action.
A video circulating on Reddit with over 104,000 upvotes shows American liquor bottles being removed en masse from LCBO shelves. According to Ontario Premier Doug Ford, American alcohol will no longer be available through wholesale, bars, restaurants or online services until Trump’s 25% tariff is lifted, amounting to little less than a de facto ban. The LCBO is responsible for distributing alcohol to nearly 40% of Canada’s population, pulling in a gross revenue of $7.4 billion in 2023. It is, by many accounts, the largest single purchaser of liquor in the world.
Though Ford may have been the first to promise the removal of American liquor, he’s not the only official following through on the threat.
Quebec Premier François Legault has confirmed that the province’s government-run retailer, Société des alcools du Québec, will be replacing American alcohol with Quebecois and Canadian goods.
British Columbia has taken a slightly different approach, pulling liquor exports from the 31 red states that voted for Donald Trump in the 2024 election. That includes products from Kentucky, home to myriad bourbon brands including Buffalo Trace, Maker’s Mark and Bulleit; Tennessee, home to Jack Daniel’s; and Texas, home to Tito’s Handmade Vodka.
“We didn’t ask for this fight that the president has brought to Canada and to British Columbia,” B.C. Premier David Eby said. “But I’ll tell you this, we’re not going to shrink from it. The president wants to hurt Canadians if he wants to hurt British Columbians. Then we have no choice but to respond in kind to the United States.”
These are the tentative first steps in what has already amounted to an all-out trade war. On Monday, Canadian Prime Minister Justin Trudeau announced that his country is introducing a 25% tariff against $155 billion worth of U.S. goods. In provinces that have decided against removing American alcohol outright, the price of those products is likely to increase in the months to come.
Mexican President Claudia Sheinbaum has announced plans to impose “targeted” tariffs on U.S. products, details of which are still forthcoming. China has done much the same, announcing additional tariffs of up to 15% on U.S. farm products, including chicken, pork, soy and beef.
