Jack Daniel’s and Jim Beam profits plunge 70% after Trump’s tariffs

Last year, Canada was one of the most reliable international buyers of American whiskey. Now it’s become one of the industry’s biggest losses.

U.S. spirits exports to Canada have plunged by nearly 70 percent, collapsing from what had been a roughly $250 million annual market for American distillers to just $89 million, according to data compiled by the Distilled Spirits Council of the United States (DISCUS).

The sharp downturn followed a trade clash sparked by President Donald Trump’s tariffs, which prompted several Canadian provinces to remove American alcohol from store shelves. The owners of iconic American whiskey brands, like Jack Daniel’s and Jim Beam, have responded with layoffs and pausing production.

Even after some tariffs were lifted, many provincial liquor systems have continued to keep U.S. spirits out of their retail stores, delivering a devastating blow to one of the industry’s most important foreign markets, according to Fox News. 

From second to sixth: canada’s rapid market exit

Canada, once the second-largest destination for American spirits exports, has now fallen to sixth place, Fox News reported. The collapse, notably, came quickly. From March through December, U.S. spirits exports to Canada dropped from $203 million in 2024 to just $60 million in 2025, a loss of roughly $143 million, Fox News reported.

Trump has repeatedly used tariffs as economic leverage, arguing that the strategy helps strengthen American manufacturing and correct trade imbalances. But the spirits industry says retaliatory actions by Canada have wiped out one of its most lucrative export markets.

“Our industry thrives in a zero-for-zero tariff environment,” says Chris Swonger, president and CEO of DISCUS. While Swonger said distillers recognize the administration’s efforts to address trade imbalances, he added that the provincial bans have been especially damaging. 

“Since Liberation Day, it’s unfortunate to report that our industry has lost over 70 percent of our exports to Canada because many provinces have decided not to carry American spirits,” he said.