Canadian Whisky Poised for Growth Amid U.S. Tariff Tensions
As trade tensions escalate between Canada and the United States, Canadian whisky producers may be set to benefit from upcoming tariff measures that could restrict American whiskey imports.
With U.S. President Donald Trump’s proposed 25% tariffs on Canadian goods expected to take effect today, Canada has signaled its intention to retaliate by removing American-made whiskey and Bourbon from store shelves. This move could create a major opportunity for domestic whisky brands in Canada’s bars and restaurants.
“Should these tariffs go ahead, Canadian whisky stands to maintain, and potentially expand, its footprint in the on-premise channel,” said Mitch Stefani, Client Solutions Director – Americas at CGA by NIQ. “As supply of American whiskey tightens, operators will naturally turn to Canadian alternatives.”
According to CGA by NIQ data, Canadian and American whiskies together account for roughly two-thirds of all whisky sold in Canada’s on-trade. While Canadian whisky leads in volume, American whiskey has recently gained market share, driven by premium pricing and strong brand recognition.
Currently, Canadian whisky accounts for 34% of volume but only 29% of dollar share, while American whiskey makes up 33% of volume and 32% of sales revenue. The potential removal of U.S. products could help local brands narrow this gap.
The trend is also bolstered by a growing ‘support local’ movement. Recent CGA consumer insights show that one in three Canadian consumers now place greater value on purchasing Canadian-made alcoholic beverages than they did a year ago.
In addition to boosting Canadian whisky, the tariffs may prompt consumers and operators to explore alternatives, such as Scotch whisky, premium Tequilas, or local craft spirits. However, industry experts believe Canadian whisky remains best positioned to capitalize on the shift.
“With fewer American products available, bars will get creative—especially with classic cocktails traditionally made with Bourbon,” Stefani noted. “This presents a strong chance for Canadian whisky to take center stage in both casual and premium settings.”
Article source - The Spirits Business, By Rupert Hahwieler
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Spirits49 is a unique company that highlights the rich diversity of Canadian craftsmanship by focusing
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Spirits49 is a unique company that highlights the rich diversity of Canadian craftsmanship by focusing
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Tariff war? I'll drink (Canadian whisky) to that
Don Livermore, master blender with Hiram Walker and Sons Limited in Windsor, Ont., displays a bottle of Lot 40 Dark Oak rye on March 26, 2021. The locally produced spirit was named world's best rye at the World Whisky Awards. PHOTO BY DAN JANISSE /Windsor Star
There’s been a lot of talk about whisky lately — and that’s saying something, coming from me.
As the master blender for Hiram Walker & Sons Distillery in Windsor, I’ve got my nose in whisky day in and day out, developing new blends and maintaining the quality of existing ones.
I love to see recipes promising a new take on the Old Fashioned and educating whisky enthusiasts and industry professionals on the complexity of a whisky blend. I also look forward to reading about the growth of my industry as I travel around the world speaking on Canadian whisky.
My life revolves around whisky. But tariffs have taken over every conversation as of late, including those about spirits and wine.
It’s somewhat disheartening to see whisky in the headlines these days in a negative light, thrust into the news coverage about tariffs and trade wars between our country and the U.S. — just on the other side of the Detroit River from where my office sits.
In 2023, Canada imported more than $100 million worth of U.S. whiskey from Kentucky, Tennessee, Florida and beyond, making us the fifth-biggest market for our southern neighbours. Even before the tariffs went into effect on March 4, liquor stores in Canada were pulling U.S. products off their shelves.
As of now, American whiskey, along with hundreds of other U.S. alcoholic beverage products, is harder to find coast-to-coast, if not impossible. Many consumers will miss it, of course — our American counterparts make fine spirits and wine.
But those same consumers now have an opportunity to learn more about what makes our own country’s whisky so special and unique.
Complex and blended history of whisky in Canada
The first record of producing whisky in what would become Canada was in Quebec City, in 1769. Early whisky production started as a side hustle for a few businessmen whose names are now synonymous with some of the world’s top alcohol brands: Hiram Walker, J.P. Wiser, William Gooderham, James Worts and Henry Corby.
Their main interest was simple: not wasting leftover grain. They distilled whiskies to remove unwanted flavours and refine the taste. That’s why, to this day, Canadian whisky tends to be easy to drink. It’s lighter and smoother compared to Scotch or bourbon. This is traditional Canadian whisky.
In 1890, the Canadian government ordered Canadian whisky to be aged, and this differentiates our whisky from the spirits from abroad. Aging it made it taste different — and better — than its competitors.
By 1900, Canadian whisky became the best-selling whisky in the world.
Americans didn’t start aging their whiskey until 1907; Scotland and Ireland joined in eight years later. Back then, we were the best at hockey and the best at whisky — and thankfully, our neighbours to the south have always been great partners in raising a glass to both.
World-class whiskey is Canadian whisky
There’s another element that sets our spirit apart: choice.
There are 44 official types of American whiskey, including bourbon, and blended, flavoured and straight rye whiskies, and others. Each has its own set of strict distilling rules.
In Canada, we have just one whisky, but within this category is a near-endless variety of options to produce it.
We need to guarantee that our whisky’s made of grain; fermented, distilled and aged in Canada; aged in a wooden container for at least three years; and has a minimum of 40 per cent alcohol. The rest is up to us distillers. We’re not held to specific mash bills or a distillation method or type of cask to use.
Our freedom lets us innovate and adapt to consumer tastes, and create new flavours to see what sells. Our freedom allows us to stand tall on the world’s stage with our Canadian whiskies and bring home gold. Our freedom lets us sit down with someone who’s convinced whisky is not the drink for them and come up with a personalized blend that tastes just right.
If all’s fair in (whisky) love and (tariff) war, those empty shelves just might mean more Canadians drinking Canadian whisky.
And when we talk about Canadian identity, we immediately think of hockey, toques, “aboot” drops and any other cliché you could toss a loonie at. With the whiplashing tariff news tugging our emotions, we’re digging deep into what makes us us — and looking for labels that truly are Canadian. And that includes whisky.
Windsor-based Don Livermore is master blender of Hiram Walker & Sons Limited and recently named 2025 Master Blender/Master Distiller of the Year.
The Evolution of Canadian Whisky
Canadian whisky has long held a unique place in the world of spirits—a product shaped by tradition, innovation, and adaptability. Blended primarily from corn and complemented by grains such as rye, wheat, or barley, Canadian whiskies are known for their smooth, approachable character and nuanced spice.
Unlike American regulations, Canadian law offers flexibility in production. To be legally considered Canadian whisky, it must be mashed, distilled, and aged in Canada for a minimum of three years in wooden barrels no larger than 700 liters. These barrels—new or used, charred or uncharred—lend complexity to the final spirit, which must contain at least 40% alcohol by volume. Most Canadian whiskies age well beyond the legal requirement, with four to six years being the norm.
One of the most intriguing aspects of Canadian whisky is its historical relationship with rye. Although rye is often used in small amounts to introduce a spicy kick, the terms “Canadian whisky,” “Canadian rye whisky,” and simply “rye whisky” are used interchangeably, regardless of the rye content. This naming tradition dates back to the earliest days of whisky-making in Canada.
The story of Canadian whisky dates back to 1769 with the establishment of the first distillery in Quebec City. Inspired by the distilling traditions of Scottish and Irish immigrants, whisky production grew rapidly. By the mid-1800s, more than 200 distilleries were operating across the country, laying the groundwork for what would become a hallmark of Canadian craftsmanship.
A major turning point came in 1919 with the onset of Prohibition in the United States. As American distillers were forced to shut down, Canadian producers saw an opportunity to meet U.S. demand. Adapting to American tastes, they began blending rye with corn, resulting in a smoother, lighter whisky that was easier to produce and widely appealing. Canadian whisky soon became a staple in the U.S.—smuggled across borders, transported by boat, and served in speakeasies from coast to coast.
When Prohibition ended in 1933, Canadian distillers were well-positioned to supply a market starved for aged whisky. Over 3.3 million gallons were imported into the U.S., much of it from Canadian producers. Even after American distilleries recovered, demand for Canadian whisky remained strong, thanks to its smooth taste and consistent quality.
Today, the U.S. remains Canada’s largest export market for whisky, with more than $500 million in annual imports. The legacy of this cross-border exchange is visible in the growth of Canadian distilleries and the lasting impact on cities like Montreal, where the Seagram family’s contributions to business and culture are still evident.
While consumer tastes continue to evolve, the qualities that define Canadian whisky—smoothness, versatility, and craftsmanship—remain timeless. As interest in premium and authentic spirits grows, Canadian whisky is increasingly positioned as a refined yet approachable choice for both classic cocktails and modern sipping experiences.
With deep roots and a legacy of innovation, Canadian whisky continues to capture the attention of discerning drinkers around the world—and its story is still being written.
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