A popular cocktail has a Trump trade problem you probably didn’t know about
A liquor industry leader says Trump's proposed tariff would be 'absolutely devastating' to Canadian distilled spirits industry
{{#rendered}} {{/rendered}}President Donald Trump's latest trade fight with Canada is now spilling into Americans’ cocktail glasses, after the administration imposed a 50% tariff on a range of Canadian imports, including spirits.
Trump initially paused the duties for three days following last-minute talks with Canadian Prime Minister Mark Carney, but negotiations failed to produce a deal before the deadline. Canada has since vowed to retaliate dollar for dollar, with its countertariffs set to take effect Sept. 8.
The U.S. tariffs cover roughly $20 billion in Canadian imports, ranging from liquor and dairy products to furniture and sporting goods. But the alcohol industry could feel the impact especially directly, as Canadian spirits now face an additional 50% levy that could drive up prices on liquor-store shelves, bar menus and cocktail tabs.
{{#rendered}} {{/rendered}}FROM BOURBON TO BORDEAUX: TRUMP'S TARIFFS SPILL INTO GLOBAL BOOZE MARKETS
A 50% tariff on Canadian spirits could reach all the way to the cocktail menu, affecting drinks made with Canadian whisky and other imported Canadian liquors served at U.S. bars and restaurants. (Prakash Mathema/AFP via Getty Images)
Chris Swonger, president and CEO of the Distilled Spirits Council (DISCUS), described the 50% levy as "absolutely devastating to the Canadian distilled spirits industry" and would have "a real impact on the American hospitality economy."
The latest move marks another escalation in a trade fight that has already sent U.S. spirits exports to Canada plunging. In retaliation for earlier U.S. tariffs, several Canadian provinces pulled American spirits from store shelves.
{{#rendered}} {{/rendered}}"First and foremost — great, thanks to President Trump because he has recognized that our industry has lost 73% of our American distilled spirits exports to Canada as a result of the provincial ban of purchasing American distilled spirits," Swonger told Fox News Digital.
"We are hopeful that an agreement will be made between the Trump administration and Canadian politicians to put American spirits back on the shelves," he added.
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{{#rendered}} {{/rendered}}American spirits are removed from store shelves in Canada amid the escalating U.S.-Canada trade dispute. (Arlyn McAdorey/Reuters)
Canada had been a roughly $250 million annual market for American distillers before the trade dispute, but fell from the second-largest destination for U.S. spirits to sixth in 2025, according to DISCUS data previously reported by Fox News Digital. From March through December, exports plunged from $203 million in 2024 to $60 million in 2025, a roughly $143 million drop.
The fallout has been especially significant for Kentucky, which produces 95% of the world's bourbon and supports more than 23,000 industry jobs, according to the Kentucky Distillers' Association.
Swonger said the steep tariffs on Canadian liquor could prove to be the leverage needed to persuade Canadian officials to reopen their market to U.S. producers.
{{#rendered}} {{/rendered}}"Applying a 50% tariff on Canadian distilled spirits would hopefully be the trigger, the forcing mechanism to get the Canadian province leaders to put American spirits back on the shelves," he said.
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U.S. spirits exports to Canada have plunged amid the trade dispute, falling from $203 million in 2024 to $60 million in 2025. (Graham Hughes/Bloomberg via Getty Images)
Swonger said the U.S. historically exports roughly $220 million worth of distilled spirits to Canada annually, while Canadian producers have exported more than $500 million worth of spirits to the much larger U.S. market.
{{#rendered}} {{/rendered}}Still, the industry doesn't want another round of tariffs.
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"We're an industry that thrives on zero-for-zero tariffs and zero trade barriers," Swonger said.
{{#rendered}} {{/rendered}}With negotiations continuing, Swonger said distillers are anxiously waiting to see whether Trump's pressure campaign produces a deal.