Spirits Canada urges revival of U.S. booze sales to preserve export access to key market

In a statement, Spirits Canada said it is disappointed by the United States government’s intention to impose a 50 per cent tariff on Canadian spirits including RTD alcoholic beverages and other selected products, effective August 19, 2026.

For nearly four decades, since the Canada–U.S. Free Trade Agreement (formerly NAFTA), Canadian spirits have moved tariff-free across the border.

“Both the Canadian and American spirits industries have felt significant impacts of this broader trade dispute,” said Cal Bricker, president and CEO of Spirits Canada. “While we are disappointed by this announcement, we remain committed to working collaboratively with governments on both sides of the border to reach a practical solution before these tariffs take effect. The long-standing trade relationship between Canada and the United States has benefited producers, consumers, workers and governments alike, and we believe that relationship is worth protecting.”

Nearly 50 per cent of all Canadian spirits production is destined for the United States, making continued access to that market essential for Canadian distillers, farmers, supply chains and the thousands of Canadians whose livelihoods depend on the industry. In 2025 alone, approx. 93 per cent of Canada’s total spirits exports were destined for the U.S. market.

Spirits Canada is calling on federal and provincial governments to work together immediately to prevent these tariffs from taking effect.

Specifically, Spirits Canada urges governments to:

• engage immediately with U.S. counterparts to secure the withdrawal or suspension of the announced tariffs before August 19;
• restore reciprocal market access for U.S. beverage alcohol products;
• avoid further escalation through additional beverage alcohol countermeasures; and
• prepare contingency support for Canadian distillers facing cancelled orders, production disruptions, inventory challenges and reduced access to the U.S. market.

“The North American spirits sector is deeply interconnected,” added Bricker. “Tariffs do not simply affect exporters – they impact farmers, manufacturers, hospitality businesses, retailers, governments and ultimately consumers in both countries. We are concerned that this action could trigger a cycle of retaliatory measures that harms an industry that has prospered under decades of fair and reciprocal trade.”