Spirits Canada Reports Important Sales Decline for U.S. Products Amid Trade Dispute
OTTAWA, ON – A recent analysis by Spirits Canada reveals a sharp decrease in sales for U.S. spirits in the Canadian market, directly linked to retaliatory measures taken in response to the ongoing U.S. trade dispute. The removal of U.S. spirits from retail shelves in most Canadian provinces has also impacted overall spirits sales.
The report highlights that Canada, a crucial market for U.S. spirits, began implementing a 25% tariff on all U.S. beverage alcohol products on March 13. This action has led to the delisting of most American spirits by Canadian retailers. However,the provinces of Alberta and Saskatchewan have since reinstated U.S.spirits to their store shelves.
This situation arises as U.S. tariffs on Canadian imports remain suspended, provided they comply with the U.S.-Canada-Mexico Agreement (USMCA), which includes spirits produced in Canada. Despite this, recent statements from U.S. President Donald Trump have suggested the possibility of a 35% tariff on imports from Canada, perhaps commencing August 1.
In 2024, the united States imported $621 million worth of Canadian spirits, while Canada imported $221 million worth of spirits from the U.S.
Background:
- Canadian spirits currently benefit from suspended U.S.tariffs under the USMCA.
- U.S. president Donald Trump has indicated potential tariffs of 35% on Canadian imports starting August 1.
- Canada imposed a 25% tariff on all U.S. beverage alcohol on March 13,leading to the removal of most U.S. alcohol products from provincial retail stores. Alberta and Saskatchewan have as resumed stocking U.S. spirits.
- In 2024, U.S. imports of Canadian spirits totaled $621 million, with Canadian imports of U.S. spirits reaching $221 million.
Media Contacts:
SpiritsCanada
Via Dulay
Distilled Spirits Council of the United States
Lisa Hawkins
Lisa.Hawkins@Distileldspirits.org
(202) 256-1330
