Distilled Spirits Council President and CEO Chris Swonger Statement in Response to Canada Removing the 25% Tariff on American Spirits
“This is a very positive sign, but until all provinces put American spirits back on their shelves it won’t have much of an impact.
“The unfortunate decision to remove American spirits from Canadian retail shelves is not only harming U.S. distillers, but it’s also needlessly reducing revenues for the provinces, and placing unnecessary burdens on Canadian consumers and hospitality businesses.
“American and Canadian spirits are deeply rooted in heritage and are meant to bring people together, not divide us. We are hopeful this is a sign that our special spirits products will soon be back on shelves for Canadians to enjoy and raise a glass to toasts not tariffs.”
-30-
BACKGROUND
- Currently, U.S. tariffs are suspended on imports from Canada that comply with the U.S.-Canada-Mexico Agreement (USMCA). Spirits produced in Canada are covered under USMCA.
- Canada, the second-largest market for U.S. spirits exports in 2024, began imposing a 25% tariff on all U.S. beverage alcohol products on March 13, and most Canadian provinces have removed all U.S. alcohol products from retail stores. Two provinces, Alberta and Saskatchewan, have since put U.S. spirits back on their shelves.
- In 2024, the U.S. imported $621 million worth of Canadian spirits. Canada imported $221 million worth of U.S. spirits.