U.S. spirits exports to Canada fell 70% between March and December 2025, according to data from the Distilled Spirits Council of the United States.Eric Gregory, the president of the Kentucky Distillers' Association, said the num bers reflect a painful reality for the state's bourbon industry."We just got in 2025 export numbers for the full year, and our exports are at a 10-year low for whiskey. We've lost 50% of our exports in 2025 to Canada alone," Gregory said.Canada imposed a 25% tariff on all U.S. alcoholic products on Mar. 13, 2025, but that tariff was lifted on Aug. 25, 2025."We're tariff-free coming in and out of Canada, but you know they're so angry at America right now that they've taken all U.S. alcohol off their shelves," Gregory said.All but two Canadian provinces have continued to boycott the sale of American products in retail stores since March. Gregory said the ongoing uncertainty poses a serious threat to an industry that operates on long timelines."That really puts our industry at risk, because it takes so long to plan for that aging barrel of bourbon," he said.Uncertainty over trade policies which Gregory said can shift daily or even hourly has left industry leaders on edge."Anxious is still a good term to use, the way people are about the trade market," he told LEX 18.Despite the strained trade relationship, Gregory said Kentucky distillers have maintained relationships with their Canadian partners."We still keep in touch with a lot of our partners, hospitality partners in Canada, and they want us back," Gregory said.The Kentucky Distillers' Association reported a $1.6 billion increase in growth in Kentucky's bourbon industry since 2024. Gregory acknowledged the industry's struggles while remaining optimistic."We're definitely hanging in there and still a major contributor to Kentucky's economy... We've definitely taken our hits, no doubt about it," Gregory said. ...read more read less