WASHINGTON — Early last year, Canadian provinces began pulling Kentucky bourbon and other American-produced liquor from government-run stores.

It was retaliation for President Donald Trump’s tariffs on imports of steel, aluminum and other Canadian products.

What You Need To Know

Last year, Canadian provinces began pulling American-produced liquor from government-run stores

It was retaliation for President Donald Trump’s tariffs on imports of steel, aluminum and other Canadian products

Now, President Trump is doubling down, announcing new 50% tariffs next month on many Canadian goods

America’s whiskey industry is warning the move could lead to more retaliation

Since then, only two provinces, Alberta and Saskatchewan, have lifted their bans.

Now, President Trump is doubling down, announcing new 50% tariffs next month on many Canadian goods.

“It’s only a response to the way they’ve treated our farmers and our people,” he said Tuesday. “Canada’s been very, very tough on us over the years.”

“I think he should probably litigate all the tariffs he’s put in place already without congressional approval,” said Rep. Thomas Massie, R-Crescent Springs on Tuesday. “I mean, if he’s going to raise tariffs, it should come to a vote here.”

A report in March by the Distilled Spirits Council of the U.S. says U.S. liquor exports to Canada dropped 70 percent, from $203 million from March to December 2024 to $60 million during the same time period in 2025, after Canadian provinces pulled American spirits from shelves.

The council’s president and CEO Chris Swonger said in a statement Monday:

“Imposing a 50% tariff on imported spirits from Canada deepens trade tensions and raises the risk of further retaliation at a time when many U.S. hospitality businesses continue to face financial hardships. We encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for U.S. spirits and avoids further harm to the U.S. hospitality sector.”

In response to the new tariffs, Michael Bilello, president and CEO of the American Whiskey Association, said in a statement Tuesday: “…we appreciate the Administration’s recognition that American producers have been unfairly denied meaningful access to one of our closest trading partners. At the same time, our goal is not escalation for the sake of escalation; that would be foolish and further damaging to a global industry already facing its most challenging times. Our goal is restored access. Additional tariffs risk deepening tensions and inviting further retaliation at a time when producers and hospitality businesses on both sides of the border need stability.”