President Donald Trump speaks as he meets with lifeguard Ryder Williams in the Oval Office of the White House, Monday, Aug. 17, in Washington, D.C. (AP Photo/Manuel Balce Ceneta)

President Donald Trump has delayed a new round of 50% tariffs on Canadian imports after the U.S. and Canada reached a last-minute deal Tuesday, temporarily easing a trade fight that has had major consequences for the alcohol industry on both sides of the border.

Trump announced the pause on his social media platform less than two hours before the tariffs were scheduled to take effect at 12:01 a.m. Wednesday.

“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote.

The delay gives the two countries more time to finalize the agreement and negotiate a broader resolution.

For the alcohol industry, however, the announcement does not immediately reverse the damage caused by the trade fight.

The latest tariffs were tied in part to U.S. complaints about Canadian treatment of American alcohol. Trump has previously accused Canada of discriminating against U.S. alcohol exports, citing provincial restrictions on American beer, wine and spirits as part of the justification for the 50% tariffs.

The dispute has already triggered significant disruption in the North American beverage market.

Canadian provinces and territories began removing American alcohol from government-controlled liquor stores in March 2025 after Trump imposed 25% tariffs on Canadian goods. The move was intended as retaliation and effectively shut many U.S. wine and spirits brands out of one of their most important export markets.

American wine producers have since reported hundreds of millions of dollars in lost sales.

U.S. wine exports to Canada plunged after the provincial restrictions took effect, with industry groups warning that producers have struggled to replace Canadian demand in an already crowded domestic market.

Canada is particularly important to the U.S. wine industry. Wine America has described Canada as the largest foreign market for American wine, with producers in states such as California, Oregon and Washington heavily exposed to the Canadian market.

The latest dispute has also put Canadian producers in an unusual position.

Some Ontario wineries have said they would be willing to see American wines return to Canadian liquor-store shelves if doing so helped secure broader tariff relief for Canadian industries. Michael Kaiser, executive director of Wine America, similarly said American producers would welcome a return to the Canadian market.

The question now is whether Tuesday’s agreement can lead to a broader easing of those restrictions.

Trump said the 50% tariffs would have applied to about $20 billion worth of Canadian imports, or roughly 5% of what Canada ships to the U.S. each year. The products covered range from hockey sticks to medical supplies.

The broader economic relationship between the countries is far larger. The U.S. and Canada exchanged roughly $880 billion in goods and services last year, according to The Associated Press.

The tariff fight has also created political pressure on Canadian officials to reconsider retaliatory measures against American products.

Earlier this month, Quebec Premier Christine Fréchette said she would consider allowing U.S. wines back onto Canadian shelves if Canada received meaningful gains in trade negotiations, including lower tariff barriers affecting sectors such as forestry, aluminum and manufacturing.

That possibility has been welcomed by some American producers, who say they have lost both sales and consumer loyalty during the prolonged absence from Canadian stores.

But Canadian wine producers have also benefited from the restrictions.

Wine Growers Ontario has said Canadian consumers have embraced local products during the trade dispute, giving Ontario wineries an opportunity to attract customers who previously purchased American wines.

A recent Abacus Data survey found that 69% of Canadians in British Columbia, Ontario, Manitoba and the Maritime provinces believed their governments should keep restrictions on American alcohol in place.

That means a return to normal trade could be complicated even if Washington and Ottawa reach a broader tariff agreement.

For American alcohol producers, the stakes extend beyond the latest 50% tariff threat.

A separate analysis from the Capital Press recently highlighted the scale of the damage already done to the U.S. wine and beer industries. The White House said Canadian imports of U.S. alcohol fell by $582 million from March 2025 through February compared with the same period a year earlier.

The Oregon Wine Board reported that Oregon wine exports to Canada fell 83% in 2025, while the Wine Institute estimated that U.S. wine exports to Canada declined 78%, representing $357 million in lost sales.

The dispute has also raised costs for American producers, including the price of imported bottles, corks and barrels.

For Canadian producers, meanwhile, the potential return of American alcohol could create new competition just as local brands have gained ground with consumers.

Tuesday’s agreement therefore represents more of an opening than a resolution for the alcohol industry.

Trump said the 50% tariffs are paused for three days while the final documents are completed. Whether that pause ultimately leads to a broader agreement — and eventually brings American alcohol back to Canadian shelves — remains to be seen.

(Photo: AP Photo/Alex Brandon)

Outlets have reported that the Trump Administration is privately urging Republican senators to delay a hemp ban scheduled to take effect in November. The moratorium would benefit stakeholders across the hemp-derived THC industry, among them the son-in-law of Susie Wiles, President Trump’s chief of staff.

A Senate funding bill released over the weekend would delay the hemp prohibition until Dec. 11, allowing hemp-derived gummies, flower, beverages and vapes to remain on shelves for an additional month. The window would give officials extra time to finalize a comprehensive hemp legalization framework, several of which have already been proposed by lawmakers including Andy Barr and Angie Craig.

Not everyone is on board. Earlier this week, Republican Senator Ted Budd filed an amendment that would keep the original Nov. 12 deadline intact. Budd vowed to close the “life-threatening loophole” in a speech to fellow lawmakers, citing the risks of lookalike name-brand products and pediatric cannabis poisoning.

The following day, Politico reports that Budd received a phone call from President Trump. An anonymous source claims that the President discussed the creation of a federal regulatory framework, but did not ask Budd outright to withdraw his amendment.

A similar conversation reportedly happened behind closed doors on Thursday, when Vice President Vance implored GOP senators to vote yes on the hemp ban extension. Dr Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services, has also lent his support, voicing “grave concerns” about senior citizens who rely on clinically appropriate, full-spectrum CBD products.

The hemp-derived THC market is valued at approximately $28.4 billion and currently supports an estimated 328,000 jobs across various industries, according to advocates.

Records suggest that lobbyists have joined the battle. Nonprofit group Team Hemp has paid $300,000 since the beginning of the year to the lobbying firm of Marty Obst, a longtime Republican strategist who worked on the 2016 and 2020 Trump presidential campaigns. Hemp Industry & Farmers of America has spent $415,000 on lobbyists in the same time frame, and claims to have “participated in substantative meetings with White House officials” on its website.

A connection between the Trump cabinet and the hemp industry has also drawn scrutiny. The New York Times reports that the moratorium campaign was led in part by Bret Worley, who married Caroline Wiles, daughter of Trump chief of staff Susie Wiles, in June.

Worley is the CEO of MC Nutraceuticals, a Denver-based company that claims to the single largest global supplier of cannabinoids. Its website offers wholesale solutions for distillate, concentrates, disposable vapes, edibles and pre-rolls, all made with hemp-derived THC.

When asked for comment, White House spokesman Kush Desai told the New York Times that Worley has “nothing to do” with the Trump administration’s stance, insisting that the hemp extension push is intended to help veterans and patients.

U.S. President Donald Trump (left) and Canadian Prime Minister Justin Trudeau arrive for a round table meeting during a NATO leaders meeting Dec. 4, 2019, at The Grove hotel and resort in Watford, Hertfordshire, England. (AP Photo/Evan Vucci, File)

A former adviser to ex-Prime Minister Justin Trudeau says Canada’s decision to keep American alcohol off store shelves is having its intended effect — and argues the country should not back down despite President Donald Trump’s latest tariff escalation.

Speaking to BNN Bloomberg, former Canada-U.S. relations adviser Diamond Isinger said provincial bans on U.S. beer, wine and spirits are “clearly yielding results” by putting economic pressure on American producers and drawing attention from the White House.

“It’s clearly yielding results. It’s clearly being noticed by the president,” Isinger said. “It’s something very frustrating for him, and it’s having very real economic effects on American producers.”

The comments come days after Trump signed an executive order imposing new 50% tariffs on certain Canadian exports while specifically criticizing Canadian provinces for continuing to block sales of American alcoholic beverages.

The White House cited the provincial restrictions as one reason for the latest trade action, arguing Canada continues to discriminate against U.S. alcohol producers.

Rather than lifting those restrictions, nine Canadian provinces this week signed a landmark agreement allowing direct-to-consumer alcohol shipments between participating provinces, a move aimed at strengthening Canada’s domestic economy while leaving the bans on U.S. alcohol in place.

Isinger said the provincial restrictions should remain until broader trade issues are resolved.

“We cannot continue to make significant concessions to the United States without seeing tangible results,” she said. “I hope the provinces remain strong.”

The remarks echo concerns raised by the U.S. distilled spirits industry following Trump’s tariff announcement. Earlier this week, the Distilled Spirits Council of the United States warned that escalating tariffs risk further retaliation and could continue hurting American distillers, whose exports to Canada have already fallen sharply since provincial liquor boards began removing U.S. products from shelves last year.

According to industry figures, exports of U.S. spirits to Canada declined by more than 70% after the retaliatory bans took effect in March 2025. Alberta and Saskatchewan are currently the only provinces that have restored sales of American spirits.

Isinger also suggested Canada could consider additional targeted economic measures if trade tensions continue, pointing to the country’s 2018 retaliatory tariffs on politically significant U.S. products such as Florida orange juice and Pennsylvania ketchup.

She argued the current dispute also presents an opportunity for Canada to strengthen internal trade and reduce barriers between provinces while negotiations with the United States continue.

Prime Minister Mark Carney met with provincial premiers this week to discuss Canada’s response to Trump’s latest tariff threats, with leaders publicly backing a unified national strategy as negotiations continue ahead of the proposed Aug. 19 implementation date for the new tariffs.

President Donald Trump speaks in the Oval Office of the White House on Friday, July 24, in Washington, D.C. (AP Photo/Rod Lamkey, Jr.)

Major players across the global spirits industry are urging the Trump administration to build on its decision to eliminate tariffs on Scotch whisky by extending similar relief to other imported spirits and wines.

The latest calls came Thursday after President Donald Trump announced the removal of tariffs on Scotch whisky and other UK whiskies, a move welcomed by producers and distributors that have spent years advocating for a return to tariff-free trade.

Pernod Ricard, whose portfolio includes The Glenlivet Scotch whisky, said the decision benefits both consumers and businesses on both sides of the Atlantic.

“The return to tariff-free trade for Scotch whisky between the UK and US — the world’s most valuable Scotch whisky market — is very welcome news for our industry,” Nodjame Fouad, CEO of Pernod Ricard’s Aged Spirits and Champagne division, said. “This move will improve access for American consumers to iconic Scotch whiskies such as The Glenlivet, while supporting businesses at home, and strengthening the long-standing trading relationship between the UK and US spirits industries.”

However, Pernod Ricard — which owns a variety of heavy-hitting brands across the alcohol industry, including Jameson, Malibu, Absolut Vodka, Perrier-Jouët and Martell — also urged the administration to continue removing tariffs affecting other beverage categories.

“We now hope to see further progress made towards the removal of tariffs affecting other spirits and wine categories — including Irish Whiskey, Champagne and Cognac — to deliver benefits for consumers, producers and hospitality businesses on both sides of the Atlantic,” Fouad said.

The Toasts Not Tariffs Coalition echoed that message, calling the Scotch decision an important first step but emphasizing that tariffs remain on many imported beverage alcohol products.

The coalition, which represents 59 organizations across the U.S. beverage alcohol supply chain, said ending the tariffs benefits far more than overseas producers.

“We greatly appreciate President Trump’s action to end tariffs on UK whiskies,” the group said in a statement. “This decision benefits not only U.S. spirits consumers, but also the thousands of American businesses that import, distribute, market, sell and serve these products.”

The statement highlighted the close relationship between American whiskey producers and scotch distillers, noting that American white oak barrels are widely used to mature Scotch whisky after being used to age bourbon.

For this reason, the coalition noted, eliminating the tariffs supports American cooperages, stave mills, loggers and other suppliers.

“We remain hopeful this is the first step toward eliminating tariffs on all imported spirits and wines, further supporting the American businesses and workers that rely on a thriving hospitality industry,” the group said. “From ports and warehouses to distributors, retailers, restaurants and bars, the removal of these tariffs will create benefits throughout the U.S. hospitality industry supply chain that supports jobs and economic activity in communities nationwide,” the coalition said.

The statements follow a similar one from the Distilled Spirits Council of the United States on Thursday, which welcomed the administration’s decision to lift the U.K. tariffs while calling for tariff relief to be expanded to imported spirits from the European Union.

Sen. Adam Schiff, D-Calif., speaks at a press conference about the introduction of the Drain the Slush Fund Act on June 1 in Washington, D.C. (AP Photo/Allison Robbert

A Democratic U.S. senator is urging Canada to end its restrictions on American wine, marking the latest bipartisan effort to pressure Canadian provinces into restoring U.S. alcohol products to store shelves.

According to The Canadian Press, California Sen. Adam Schiff sent a letter in June to Quebec Economy Minister Christine Fréchette asking the province to resume imports and sales of American wine. Schiff highlighted the request publicly on Thursday.

“Canada’s boycott of California wine is causing devastating harm to winegrowers,” Schiff wrote on Substack. “I’m urging the Canadian government to recognize that California doesn’t agree with these tariff wars, to lift these restrictions, and increase consumer options to strengthen both our economies.”

Several Canadian provinces stopped purchasing American alcohol in 2025 after President Donald Trump imposed tariffs on Canadian goods and repeatedly suggested Canada should become the 51st U.S. state.

While Alberta and Saskatchewan have since resumed selling American alcohol, major markets including Ontario and Quebec continue to keep most U.S. wine, beer and spirits off government store shelves.

Schiff’s appeal comes as pressure from Washington has expanded beyond Republican lawmakers.

Earlier this month, a bipartisan group of 14 California lawmakers also asked Quebec to restore American wine sales, arguing that the restrictions have eliminated access to a market worth roughly $434 million.

Meanwhile, Republican Rep. Claudia Tenney of New York recently introduced the Combating Attacks on our National Alcoholic Drinks by Allies Act, or CANADA Act. The legislation would require the U.S. Trade Representative to investigate whether Canadian provincial liquor boards violate U.S. trade law by restricting American alcohol.

If the investigation finds unfair trade practices, the U.S. could respond with additional tariffs or other trade measures.

American alcohol industry groups have also intensified their lobbying efforts. The Distilled Spirits Council of the United States says Canada’s retaliatory restrictions contributed to a 63% decline in U.S. spirits exports to Canada in 2025, while the American Whiskey Association has backed congressional efforts to investigate the provincial bans.

Despite the growing political pressure, Quebec says its position has not changed.

A spokesperson for Fréchette told The Canadian Press the province will maintain its restrictions for as long as U.S. tariffs remain in place.

“In the context of the ongoing trade war, the premier continues to defend Quebec’s economic interests,” the spokesperson said.

Ontario Premier Doug Ford has taken a similar stance, repeatedly saying American alcohol will not return to LCBO shelves until the United States removes its tariffs on Canadian goods.

This week, after news of Tenney’s proposed legislation, Ford reiterated that position.

“We won’t back down,” he wrote. “The fastest and only way to get U.S. alcohol back on Ontario shelves is for the U.S. to drop its illegal tariffs on Canada.”

The dispute continues as uncertainty also surrounds the future of the Canada-United States-Mexico Agreement (CUSMA), after the Trump administration announced it would not seek an immediate renewal of the trade pact, triggering a formal review process.

President Donald Trump speaks June 10 in the Oval Office of the White House in Washington, D.C. (AP Photo/Julia Demaree Nikhinson)

American whiskey, bourbon and other U.S.-made alcohol products will remain off store shelves in Ontario until Canada and the United States reach a trade agreement, according to Ontario Premier Doug Ford.

Ford said he has no plans to reverse Ontario’s ban on U.S. alcohol sales while trade tensions between the two countries continue, CTV News reported Tuesday.

“I just want to get this deal done, and I can assure you, once that deal is done, I’m going to be sitting down and bringing all the booze back on shelves in Ontario, and everyone’s going to be kumbaya,” Ford said, according to CTV News.

He added that perhaps Ontarians would celebrate with “a little drink of Kentucky bourbon or something” once an agreement is finalized.

The day after Ford’s comments, uncertainty surrounding the future of North American trade increased.

Speaking Wednesday, President Donald Trump said he is “not looking to renew” the U.S.-Mexico-Canada Agreement, the free trade pact scheduled for review beginning July 1. “We don’t need anything” from Canada or Mexico, Trump said, suggesting he may allow the agreement to expire despite previously praising the deal as an improvement over the its predecessor, the North American Free Trade Agreement.

Ontario removed thousands of American-made alcohol products from LCBO shelves last year in response to tariffs and trade actions initiated by U.S. President Donald Trump.

The move affected a wide range of American spirits, wines and beers, including Kentucky bourbon brands that had long been sold through the province’s government-run liquor system.

Ford has repeatedly said he is willing to restore those products, but only after a broader trade dispute between the two countries is resolved.

In April, he said he would reverse the policy “in a heartbeat,” but maintained that doing so before a deal is reached would undermine Canada’s position.

Ontario represents one of the largest export markets for many American alcohol producers, making the continued absence of U.S. products from LCBO shelves a notable issue for distillers and suppliers south of the border.

Ford made the comments while visiting Washington for meetings with lawmakers and business leaders.

According to CTV News, he met with U.S. Sen. Kevin Cramer of North Dakota and several other policymakers during the trip. A planned meeting with U.S. Chamber of Commerce Chair Ross Perot Jr. was canceled because of a scheduling conflict.

Ford also appeared on CNN during the visit, where he emphasized the need for a quick resolution to the trade dispute.

The premier’s remarks suggest that American distillers hoping to regain access to Ontario’s liquor stores may have to wait until a larger trade agreement is reached between the two countries.

Ontario represents one of the largest export markets for many American alcohol producers, making the continued absence of U.S. products from LCBO shelves a significant issue for distillers and suppliers south of the border.

The boycott has also created costs within Ontario itself. Last month, CBS News reported that, according to an associate professor at a university in Ontario, the province may be spending as much as $20 million annually to store unsold American alcohol that was pulled from LCBO shelves after the trade dispute began.

For now, bourbon and other American alcohol products remain sidelined in one of Canada’s largest beverage markets.

President Donald Trump attends an event about loosening a federal refrigerant rule, in the Oval Office at the White House, Thursday, May 21, 2026, in Washington. (Photo: AP Photo/Jacquelyn Martin)

Lawyers representing Donald Trump have filed a trademark complaint against a pro-Republican winery that sells a variety of products with “45-47” branding, The Daily Mail reported on Thursday.

According to U.S. Patent and Trademark Office filings seen by the outlet, the petition was made on behalf of three Trump-affiliated companies — DTTM Operations, CIC Operations and Trump Wine Marks LLC. Lawyers are reportedly seeking to cancel the trademark of three wines sold by the Republican Red Winery in Monterey, California, arguing that they create a “false suggestion of connection” to Trump.

The wines in question are currently available online in an $87 “Big Beautiful Bundle,” which features a Cabernet Sauvignon, Chardonnay and Pinot Noir labeled with pictures of stars, stripes and eagles. All have the numbers “45” and “47” front and center — a reference to Trump serving as both the 45th and 47th president of the United States.

(Photo: Republican Red Winery)

The trademark filing pits Trump against one of his most vocal supporters. Founded in 2020 by second-generation winegrape grower Paul Johnson, Republican Red Winery is an unabashedly partisan brand, specializing exclusively in products that pay tribute to contemporary politics and American history. Recent releases include an “Epic Fury” wine that nods to US operations in Iran, a “Drain The Swamp” Chardonnay and a “VinoMAHA” available in Cabernet Sauvignon, Cabernet Franc, Pinot Noir and Riesling varieties.

The winery’s bottles are only available online, as Johnson claims that distributors and retailers are unwilling to sell a product that’s “unapologetically conservative.” In a recent interview on Fox News, Johnson said that he’s amassed over 80,000 customers since debuting the brand.

“We believe that political discussions should be encouraged at the dinner table, not shunned. The elephant in the room should be embraced, not avoided,” the winery’s website reads. “We believe that Republican Red sparks important conversations. Sharing our genuine shades of red is how we unite the Republican Party and bring undecided voters to the right side!”

Republican Red Winery isn’t the first alcohol maker to sell Trump-branded products — but it did have the unique misfortune of stepping on the toes of an existing venture associated with the president.

In 2011, Eric Trump opened the Trump Winery in Charlottesville, Virginia. Purportedly the largest vineyard in its state, the brand sells a variety of aperitivos, ciders and wines, including a gold-foiled “Presidential Reserve” currently on sale for $245 through its website. Eric Trump was also responsible for the relaunch of Trump Vodka, which opened for pre-orders last December following a 14-year hiatus.

FBI Director Kash Patel (right) and Acting Attorney General Todd Blanche announce that former FBI Director James Comey has been indicted April 28 at the Justice Department in Washington, D.C. (Photo: AP/Cliff Owen)

A new report from The Atlantic, published Wednesday evening, alleges that FBI Director Kash Patel has been distributing personalized bottles of Woodford Reserve bourbon to FBI staff, government officials and civilians while conducting official business, adding another layer to the growing controversy surrounding Patel’s alleged relationship with alcohol.

The report by journalist Sarah Fitzpatrick claims Patel regularly travels with custom-engraved bottles bearing the phrases “Kash Patel FBI Director” and “Ka$h,” alongside an FBI shield and references to his status as the bureau’s ninth director. One bottle surfaced on an online auction site before being purchased by The Atlantic, according to The Atlantic.

A bottle of FBI Director Kash Patel’s custom Woodford Reserve bourbon. (Photo: The Atlantic

According to The Atlantic, Patel has distributed the bottles during FBI-related events and official travel, including a trip to Milan during the Winter Olympics earlier this year. The report also alleges that Department of Justice aircraft were used to transport cases of bourbon.

The FBI did not deny the existence of the bottles. In a statement to The Atlantic, a bureau spokesperson said the gifts were consistent with longstanding traditions involving commemorative items exchanged by senior FBI officials.

“The bottles in question are part of a tradition in the FBI that started well over a decade ago, long before Director Patel arrived,” the spokesperson said, according to the report.

However, several current and former FBI officials quoted in the story said they had never previously seen an FBI director distribute personally branded liquor bottles, particularly to civilians outside the bureau.

A spokesperson for Woodford Reserve said the engravings would have been added after purchase through a customization service, according to The Atlantic.

Ongoing Debate Around Alcohol and Patel’s Conduct

The new allegations build on previous reporting from The Atlantic regarding Patel’s alleged drinking habits and leadership style at the FBI.

Last month, Patel filed a $250 million defamation lawsuit against The Atlantic and Fitzpatrick over an earlier report alleging excessive drinking and erratic behavior. The Atlantic’s initial article included anecdotes describing Patel as being so seemingly intoxicated that his security detail struggled to wake him. According to the report, a request was made for breach equipment usually used by SWAT and hostage-rescue teams last year because Patel was unreachable behind locked doors.

Patel strongly denied the accusations in the article, calling the reporting “categorically false.”

That report was soon followed by a push from the House Democrats calling for the FBI director complete an alcohol screening test following the allegations.

The latest Atlantic report claims some FBI personnel view the personalized bourbon gifts as inappropriate within an agency that has historically maintained strict standards regarding alcohol use and professional conduct.

Among the incidents described in the story is an alleged dispute at the FBI training facility in Quantico, where a missing bottle reportedly prompted threats of polygraphs and internal investigations.

The story also highlights Patel’s broader embrace of personal branding and merchandise, including apparel, challenge coins and accessories connected to his public persona and political following. Within the story are photographs of Patel wearing a scarf, sweatshirt and hat all branded after himself. Other photos show multiple Kash Patel challenge coins and Kash Patel-branded Nike sneakers.

According to The Atlantic, Patel previously operated cigar and merchandise ventures before becoming FBI director and continues to maintain close ties to branded promotional products associated with his name.

The controversy arrives as Patel remains under heightened political scrutiny following the earlier allegations surrounding alcohol use and workplace conduct at the FBI.

President Donald Trump speaks before signing an executive order regarding retirement savings in the Oval Office of the White House, Thursday, April 30, 2026, in Washington. (AP Photo/Alex Brandon)

The Kentucky Distillers’ Association released a statement applauding President Donald Trump’s Thursday decision to remove tariffs on Scotch whisky, calling the move a restoration of reciprocal, tariff-free trade between Kentucky and Scotland’s whisky industries.

The statement follows Thursday’s announcement that the U.S. will eliminate tariffs on Scotch, a policy shift expected to ease pressure on transatlantic whisky trade and reinforce long-standing supply chain ties.

The KDA emphasized the importance of barrel exports, noting that Scottish distillers have long been the largest international buyers of used Kentucky bourbon barrels — a key secondary market created by U.S. regulations requiring bourbon to be aged in new charred oak barrels. Scotland doesn’t have such a regulation, and a majority of scotch whiskies are aged in ex-bourbon barrels.

Economic Stakes for Kentucky

According to the KDA, Kentucky’s bourbon industry contributes more than $10.6 billion annually to the state economy and supports nearly 24,000 jobs.

The group framed the tariff removal as a positive development at a time when bourbon producers continue to navigate broader industry challenges, including shifting global demand and trade disruptions.

Here is the Kentucky Distillers’ Association’s statement in full:

“For generations, Kentucky and Scotland have been close partners in crafting the world’s most sought‑after whiskies. The Kentucky Distillers’ Association applauds President Trump’s decision to remove tariffs and restrictions on Scotch whisky. This action restores reciprocal, tariff-free trade between our historic spirits and is especially important for Kentucky, as Scotch distillers have long been the largest export market for Kentucky’s used Bourbon barrels.

Kentucky Bourbon is a cornerstone of our state’s economy, contributing over $10.6 billion annually and supporting nearly 24,000 jobs across the Commonwealth. While Kentucky Bourbon continues to face its fair share of challenges, this development is welcome news for our signature industry’s ongoing efforts to share America’s only native spirit with enthusiasts around the world.”

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President Donald Trump and first lady Melania Trump, speak with Britain’s King Charles III and Queen Camilla as they depart the South Lawn of the White House, Thursday, April 30, 2026, in Washington. (AP Photo/Manuel Balce Ceneta)

President Donald Trump said Thursday he will eliminate tariffs on Scotch whisky, framing the decision as a gesture to strengthen U.S.-U.K. ties following a White House visit from King Charles III and Queen Camilla.

The move, reported on by Politico, removes a 10% tariff that has weighed on scotch exports to the U.S., the category’s largest global market. Trump said the decision also reflects closer cooperation between Scottish distillers and Kentucky’s bourbon industry, particularly around the exchange of oak barrels used in whisky maturation.

“In honor of the King and Queen… I will be removing the tariffs and restrictions on whiskey having to do with Scotland’s ability to work with the Commonwealth of Kentucky,” Trump said in a post on Truth Social.

The rollback comes after sustained lobbying from the Scotch Whisky Association and support from U.S. producers. Scotch exports to the U.S. fell 15% in 2025, while American whiskey exports dropped 19% globally, according to industry data.

Mark Kent, CEO of the Scotch Whisky Association, called the decision a “significant boost” for distillers navigating a challenging trade environment.

The tariff removal is part of a broader economic framework between the U.S. and U.K., which also includes expanded market access for sectors such as agriculture and pharmaceuticals, according to U.S. Trade Representative Jamieson Greer.

The decision underscores the long-standing relationship between scotch and bourbon production. Under U.S. law, bourbon must be aged in new charred oak barrels. Once used, many of those barrels are exported to Scotland, where they are reused to age Scotch whisky—an arrangement that supports both industries.

Trump highlighted that trade in barrels as a key factor in the decision, noting the “great inter-country trade” tied to whiskey production.

Political and Industry Response

The move drew support from Kentucky lawmakers, including Rep. Andy Barr, who said the decision benefits the state’s signature bourbon sector.

The announcement follows months of pressure from producers on both sides of the Atlantic, as tariffs and broader trade tensions — exacerbated by geopolitical conflicts — have disrupted global spirits markets.

For scotch producers, the tariff removal restores more favorable access to their most important export destination. For U.S. distillers, it signals potential stabilization in a trade relationship that underpins both bourbon production and the global whisky supply chain.

The Kentucky Distillers’ Association thanked the president in a statement.