American Spirits Industry Pushes Back on Trump’s Latest Canada Tariffs: ‘Risk of Further Retaliation’

President Donald Trump speaks to reporters as he exits Air Force One on Sunday, July 19, at Joint Base Andrews, Md., after attending the World Cup final soccer match. (AP Photo/Jacquelyn Martin)

The leading trade group representing America’s distilled spirits industry is concerned that President Donald Trump’s newly announced 50% tariffs on certain Canadian imports could deepen the very trade dispute they are meant to resolve.

In a statement released Monday evening, Distilled Spirits Council of the United States President and CEO Chris Swonger said the organization appreciates the administration’s recognition of the damage caused by Canada’s restrictions on American spirits but urged both countries to avoid further escalation.

“For nearly a year and a half, American spirits have been pulled from store shelves across much of Canada as collateral damage in a broader trade dispute unrelated to our sector, and we appreciate the Administration’s recognition of the significant damage these restrictions have caused U.S. distillers,” Swonger said in a news release.”We had hoped, however, that this issue could be resolved without further escalation.”

The statement came hours after President Trump signed a proclamation imposing a 50% tariff on certain Canadian products beginning Aug. 19, citing what the White House described as Canada’s discriminatory treatment of U.S. alcoholic beverages. The administration argued that provincial bans on American alcohol have unfairly harmed U.S. producers and justified the new tariffs under Section 338 of the Tariff Act of 1930.

The proclamation specifically points to decisions by Canadian provinces to remove U.S. beer, wine and spirits from government-controlled liquor stores beginning in March 2025. According to the White House, U.S. alcohol exports to Canada fell approximately 81% over the following year, while imports from other countries increased.

Swonger warned that while Canada’s restrictions have been devastating for American distillers, additional tariffs could create new problems for businesses on both sides of the border.

“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,” Swonger said.

“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.”

Canada removed American spirits from liquor store shelves in March 2025 in retaliation for U.S. tariffs on Canadian goods. While Alberta and Saskatchewan have since resumed sales of U.S. alcohol, major markets including Ontario and Quebec continue to block American products.

According to DISCUS, U.S. spirits exports to Canada fell by more than 70% during the first 10 months of the retaliatory bans.