Standing in Ottawa’s bustling ByWard Market on a crisp August morning, I watch as Jason Moreau, a 44-year-old liquor store manager, reorganizes his display shelves. American whiskeys and bourbons—once prominently featured—now occupy the bottom row, while Canadian and European spirits have claimed prime eye-level positions.
“It started as scattered customer requests last spring,” Moreau tells me, gesturing toward bottles of Jack Daniel’s and Jim Beam gathering dust. “By early summer, we were seeing sales drop by half. Now? American liquor sits here until we discount it.”
This scene is playing out across Canada, where U.S. alcohol exports have plummeted more than 60% since January, according to data released yesterday by the U.S. Department of Commerce. The collapse represents an estimated $418 million in lost revenue for American producers through July 2025, with bourbon and Tennessee whiskey manufacturers bearing the brunt of the decline.
The cause? A grassroots consumer boycott that began as social media hashtags like #NoUSBooze and #CanadianSpiritsOnly has evolved into a sustained economic movement affecting everything from Kentucky bourbon to California wines.
“This isn’t just symbolic protest—it’s having real economic consequences,” explains Dr. Elise Lamarche, trade economist at the University of Toronto. “What makes this boycott particularly effective is its concentration in a single, high-margin export category where alternatives are readily available.”
Data from the Distilled Spirits Council shows American whiskey exports to Canada—which had grown consistently for 15 consecutive years—decreased by 64% in the first half of 2025. Major producers like Brown-Forman Corporation, maker of Jack Daniel’s, have already issued earnings warnings, citing the “unexpected and severe contraction” in the Canadian market.
The boycott stems from increasingly strained bilateral relations following controversial U.S. tariffs on Canadian aluminum and steel implemented in February, coupled with contentious renegotiations of cross-border water rights agreements affecting the Great Lakes region. What began as a trade dispute has morphed into something more culturally significant.
“We’ve always defined ourselves partly by how we differ from Americans,” says Thomas Clark, a customer I meet at a liquor store in Toronto’s Distillery District, where a “Proudly Canadian” banner hangs prominently. “But this feels different—more purposeful. I’ve switched to Gibson’s Finest, and honestly, I prefer it now.”
The Canadian government has carefully avoided endorsing the boycott while simultaneously introducing a “Know Your Spirits” campaign promoting domestic producers. The strategy has boosted Canadian distilleries, with companies like Crown Royal reporting a 28% increase in domestic sales.
When I visited Forty Creek Distillery in Grimsby, Ontario, production lines were running extended shifts to meet demand. “We’ve hired 38 new employees since April,” says operations manager Samantha Williams, leading me through a warehouse filled with oak barrels. “We’re seeing customers who’d never considered Canadian whisky before.”
The movement has spread beyond spirits. According to the Wine Institute, U.S. wine exports to Canada fell 48% in the second quarter. California vintners, who have invested heavily in marketing to Canadian consumers over the past decade, are particularly concerned about losing hard-won market share.
“Once consumers establish new purchasing habits, they’re difficult to change back,” warns Martin Reynolds, marketing director at Constellation Brands, which produces both American and Canadian beverages. “We’re shifting marketing dollars to our Canadian portfolio because we don’t see this trend reversing quickly.”
The boycott’s effectiveness stems partly from Canada’s government-controlled liquor distribution system, which makes sales data highly visible. Provincial liquor boards in Ontario, Quebec, and British Columbia have reported American spirit sales declines exceeding 70% in some categories.
American producers are responding with price cuts and increased marketing, but with limited success. “Discounting isn’t solving the fundamental issue,” admits William Newsome, export director for a Kentucky distillery group, speaking to me by phone. “This is about consumer sentiment, not price sensitivity.”
Economic analysts predict lasting impacts. A Bank of Montreal report estimates the boycott could permanently reduce U.S. market share in Canada’s $5.6 billion spirits market by 15-20 percentage points, even after relations normalize.
For small American producers, the stakes are particularly high. “Canada represented 40% of our international business,” says Rebecca Walden, co-founder of a craft distillery in Washington state. “We’ve had to lay off three people and delay expansion plans.”
Back in Ottawa, I visit Parliament Hill, where Finance Minister Carolyn Bennett carefully navigates questions about the consumer movement. “Canadians make their own purchasing decisions,” she states diplomatically. “Our government focuses on ensuring fair trade practices and supporting our domestic industries.”
As evening falls, I join a group of professionals at a popular bar in Montreal’s Mile End district. The bartender, Phillipe Tremblay, pours exclusively Canadian cocktails. “A year ago, I had maybe five Canadian whiskeys,” he says, motioning to a shelf now stocked with over twenty domestic options. “Now customers specifically ask for Canadian spirits. It’s become a point of pride.”
Whether this consumer shift represents a temporary protest or a permanent realignment remains uncertain. But walking through Quebec’s eastern townships the next day, I notice a small distillery has hung a new sign: “Your choice matters. Thank you for choosing local.”
For American producers hoping for a quick return to normal, that sentiment may prove the most challenging obstacle of all.
