Canada's latest counter-tariffs, which took effect Sept. 8, are renewing questions about whether and when Tennessee whiskey will return to Canadian shelves.
The new counter-tariffs are the most recent escalation amid the trade war with the U.S. According to Reuters, the tariffs cover $20 billion of U.S. goods, with duties ranging from 15% to 50% across products ranging from cheese to steel. Canada's tariffs come after President Donald Trump imposed a $20 billion tariff on Canadian exports to the U.S.
U.S. and Canada have been in a trade war since early 2025 after the Trump administration announced sweeping tariffs on Canadian imports. Canada responded with retaliatory tariffs on U.S. goods, including alcohol. In March 2025, government-controlled
liquor stores pulled American beer, wine and spirits off shelves, including Tennessee whiskey.
Since the boycott, Tennessee brands such as Jack Daniel's and Uncle Nearest have reported sales struggles. Those struggles will seemingly continue, as Canada has shown no signs of lifting the ban. However, the U.S.'s northern neighbor has not indicated that its latest round of tariffs includes new measures specifically targeting Tennessee whiskey.
Why exactly is Canada boycotting Tennessee whiskey?
When the Trump administration imposed its sweeping tariffs on Canada in March 2025, it included a 25% tax on Canadian alcohol. Shortly after, Canada imposed its own 25% tariff on American alcohol, but the country went a step further by pulling it off shelves in several provinces, aiming to boost domestic liquor sales and use alcohol as a bargaining chip in its trade war with the U.S.
According toUSA TODAY, eight of Canada's 10 provinces continue to restrict or ban sales of American alcohol in government-run liquor stores.
After Canada imposed retaliatory tariffs on U.S. goods, British Columbia Premier David Eby announced the targeted ban on American liquor distilled in Republican states, reported New Market Today.
"It's a matter of strategy, to go after Republican products, to target Republicans, the ones who are doing this to American families and Canadian families," he added.
Jack Daniel's, Jim Beam, Bulleit, Tito's and Bacardi were among the most notable liquor brands included in the ban, all of which are produced in Republican states.
Mélanie Joly, Canada’s minister of industry, acknowledged the political and economic pressure of the ban, USA TODAY reported. "We’re also targeting products that will target states in the U.S... We’re being wise and strategic to put political pressure."
How has Canada's ban impacted Tennessee's leading whiskey brands?
According to Chris Swonger, CEO of the Distilled Spirits Council of the United States, the U.S. liquor market was a $200 million market prior to the tariffs. It has since shrunk to $60 million.
“This discriminatory treatment of U.S. spirits products has persisted for more than a year and a half, causing significant economic harm to our industry,” Swonger said.
Jack Daniel's parent company, Brown-Forman, recently reported its first-quarter earnings of FY 2027, noting that its sales fell 1% to $911 million. The company attributed several factors to this decrease, including Canada's boycott.
Jack Daniel's was one of the first American liquor brands to be pulled off Canadian shelves, and according to Brown-Forman CEO Lawson Whiting, that is expected to continue.
"I mean, that's worse than a tariff, because it's literally taking your sales away, [and] completely removing our products from the shelves," Whiting said when Jack Daniel's was first pulled out of Canadian stores.
Fawn Weaver, the founder and former CEO of Uncle Nearest who was recently ousted amid a lawsuit, said in a March 2025 interview with Business Insider Africa that the company had already been scaling back its international focus in anticipation of a trade war.
"We had to make a decision to not focus as much on international until the trade war was over," said Weaver. "Well, it's not been over... They pulled us off the shelf right along with Jack Daniel's."
What Tennessee sells to Canada and why it matters
Tennessee's leading international trade partner in 2025 was Canada, as the state exported $6.4 billion in goods to the country, representing a 17% of the state's total exported goods, according to the Office of the United States Trade Representative.
In 2025, Tennessee exported $34.8 billion of manufactured products. The state's leading export was computer and electronic products, which accounted for $9.3 billion of the exported goods, followed by transportation equipment ($5.0 billion), miscellaneous manufactured commodities ($4.9 billion), chemicals ($4.9 billion) and machinery ($2.6 billion).
According to Canada's published tariff list, Tennessee appears likely to be affected in two industries, electronics and machinery, as both are included in the country's latest round of retaliatory tariffs.
What industries stand to lose more from Canada's latest round of tariffs?
While nothing stands to change with American alcohol and Tennessee whiskey in Canada, several other industries and products stand to face greater losses under the country's most recent package of tariffs, according to Canada's published tariff list.
- Steel and aluminum
- Dairy products
- Appliances and household goods
- Agricultural equipment
- Paper products
- Electronics
- Seafood
- Furniture
- Clothing
- Lumber
Peter Burditt covers trending news and service journalism for The Tennessean. Contact him at PBurditt@nashvill.gannett.com
This article originally appeared on Nashville Tennessean: Tennessee whiskey hit hard by Canada trade war. Which industries could be next?
