Canada lifts tariffs on Kentucky Bourbon as USMCA trade relations improve

Prime Minister Mark Carney has announced the restoration of reciprocal zero tariffs on Kentucky Bourbon and other goods under the United States-Mexico-Canada Agreement (USMCA), a move welcomed by the Kentucky Distillers’ Association (KDA). The decision, made public this week, reverses previous trade measures that had imposed tariffs on American whiskey exports to Canada. The KDA, which represents the majority of Bourbon producers in Kentucky, expressed strong support for the change.

Eric Gregory, president of the KDA, said the association hopes this action will encourage further negotiations toward a permanent trade agreement. He emphasized that the return to zero tariffs benefits both American businesses and Canadian consumers who have been seeking access to Kentucky Bourbon, which is recognized as America’s only native spirit. Gregory also thanked provincial leaders in Alberta and Saskatchewan for their earlier decisions to allow Kentucky Bourbon and other American alcoholic beverages back onto store shelves.

The tariff dispute began several years ago as part of broader trade tensions between the United States and Canada. In response to U.S. tariffs on Canadian steel and aluminum, Canada imposed retaliatory tariffs on a range of American products, including whiskey. These measures affected Kentucky Bourbon exports, which had seen significant growth in Canada prior to the trade conflict.

Industry observers note that Canada is one of the largest export markets for American whiskey. The return to zero tariffs is expected to boost sales for Kentucky distilleries, from large global brands to smaller craft producers. Many distillers rely on international markets to support growth and investment in their operations.

The KDA, founded in 1880, has played a central role in promoting Kentucky’s Bourbon industry. Its members produce most of the world’s Bourbon and operate popular tourism initiatives such as the Kentucky Bourbon Trail and the Kentucky Bourbon Trail Craft Tour. These programs attract visitors from around the world and contribute significantly to Kentucky’s economy.

With tariffs lifted, importers and retailers across Canada are preparing to restock their shelves with Kentucky Bourbon. Consumers in provinces and territories who have faced limited availability in recent years are expected to see a wider selection return soon. The KDA says it looks forward to Canadians once again enjoying Kentucky’s signature spirit.

Trade experts say that while this move marks an important step forward, ongoing negotiations will be needed to secure a long-term agreement that ensures stable market access for both countries’ industries. For now, distillers and whiskey enthusiasts alike are celebrating the renewed opportunity for cross-border commerce and cultural exchange.