Massachusetts Treasurer Deb Goldberg speaks at a state Democratic Party unity event Sept. 5, 2018, in Boston. (AP Photo/Bill Sikes)

Massachusetts Treasurer Deb Goldberg warned that ongoing tariff uncertainty is putting alcohol industry jobs and state tax revenue at risk as distributors, suppliers and manufacturers struggle to absorb rapidly changing costs, WWLP Springfield reported.

“I feel that this whole tariff thing is a game. And it’s a game that is risking people’s lives in the sense — it’s risking their livelihoods,” Goldberg said Wednesday during a press call hosted by For the Long Term, a nonprofit focused on state and municipal financial leaders.

The comments came as alcohol industry executives described the effects of tariffs on businesses across the supply chain, from importers and distributors to restaurants, retailers and consumers.

The U.S.-Canada trade dispute has added another layer of uncertainty for the industry. The Trump administration imposed a 50% tariff on certain Canadian products in August after a three-day suspension, while a separate Sept. 8 proclamation ordered certain Canadian alcoholic beverages excluded from U.S. imports beginning Sept. 29.

Chris Conrad, president of New England alcohol distributor Martignetti Companies, said tariffs have reduced earnings while pushing financial pressure onto suppliers, restaurants, retailers and consumers.

Conrad said Massachusetts’ Alcoholic Beverages Control Commission, which operates under Goldberg’s oversight as state treasurer, has provided flexibility as tariff changes have made pricing difficult to predict.

“That allows us to make changes as we need on the fly, literally with no day’s notice,” Conrad said, according to WWLP Springfield. “And we’re grateful for their partnership in that regard.”

Under normal Massachusetts rules, out-of-state alcohol suppliers must submit prices to the commission by the first day of the prior month for those prices to take effect the following month. Goldberg said the ABCC has allowed suppliers to request immediate price changes because of the difficulty of operating under the standard schedule.

“We are doing everything we can do to support our businesses,” Goldberg said.

The pricing flexibility comes as tariff-related costs continue to affect multiple parts of the beverage alcohol industry. Scott Allen, vice president of wine and spirits importer and distributor M.S. Walker, said his company has decided to stop manufacturing certain products because consumers “just will not tolerate these price increases.”

Allen credited Goldberg with listening to industry concerns and acting on requests involving the state’s regulatory system.

The effects also extend beyond imported spirits. The 50% U.S. tariffs on steel and aluminum have increased costs for craft brewers, who rely heavily on aluminum cans and steel products such as kegs and brewing equipment. The Brewers Association has estimated that aluminum cans accounted for 75% of packaged craft beer volume and revenue based on early 2025 sales data.

Goldberg said the broader concern is what sustained disruption could mean for Massachusetts’ tax base.

“Quite often these retailers are a core part of local revenue sources, and the alcoholic beverages industry also pays an enormous amount of taxes and employs a lot of people,” Goldberg said. “So overall, as state treasurer, I am also very worried about general revenues coming into the state and us being able to sustain the job that government has to do.”

The Massachusetts Alcoholic Beverages Control Commission oversees alcohol licensing and regulation in the state. Goldberg’s office says the commission is working with industry stakeholders as tariff changes create additional challenges for businesses.

The warning comes as the administration’s Canadian alcohol measures approach another major deadline. Under the Sept. 8 proclamation, certain Canadian alcoholic beverages will be excluded from U.S. imports beginning Sept. 29, while covered products imported before that date but not yet entered for consumption remain subject to the 50% duty.

President Donald Trump gestures as he walks onto the 18th green for the Irish Open golf tournament trophy presentation ceremony at Trump International Golf Links Ireland on Sept. 13 in Doonbeg, Ireland. (AP Photo/Julia Demaree Nikhinson)

The U.S. spirits industry is welcoming President Donald Trump’s announcement that the United States will remove its 10% tariff on Irish whiskey.

Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, called the announcement “another positive step toward reducing barriers to spirits trade.”

“Following President Trump’s earlier action to remove tariffs on Scotch and all other UK whiskies, this announcement is another positive step toward reducing barriers to spirits trade,” Swonger said in a statement. “As U.S. hospitality businesses enter the critical holiday season, this action will provide a welcome boost for retailers, restaurants, consumers and the American economy.”

Trump announced the tariff move Sunday during the Irish Open at his family-owned golf course in Doonbeg, Ireland. The announcement came after Trump met with Irish Prime Minister Micheál Martin and as Irish golfer Shane Lowry, who won the tournament, was among those who had urged Trump to remove the tariff.

Irish whiskey currently faces a 10% U.S. tariff as part of duties imposed on wine and spirits from the European Union. The rate was reduced from 15% in July.

Trump did not provide a timeline for when the tariff would be removed, and details on how the administration would implement the announcement were not immediately available.

The Irish Whiskey Association also welcomed Trump’s announcement, saying it would continue working with U.S. and European officials toward a return to zero-for-zero tariffs across beverage exports.

President Donald Trump speaks on the 18th green during the Irish Open golf tournament trophy presentation ceremony for Shane Lowry, of Ireland, on Sept. 13, at Trump International Golf Links Ireland in Doonbeg, Ireland. (AP Photo/Julia Demaree Nikhinson)

During a weekend trip to Ireland, President Donald Trump said the United States will remove its 10% tariff on Irish whiskey, potentially ending a trade barrier that has affected one of Ireland’s biggest drinks exports to the U.S.

Trump made the announcement Sunday during a golf tournament at Trump International Golf Links in Doonbeg, Ireland, near the end of a 48-hour visit to the country, Reuters reported. The announcement reportedly drew cheers from the crowd.

“Everybody’s been bugging me” to do it, Trump said, according to PBS. “And I said, ‘On behalf of the United States of America, I am going to take the tariffs off’. … “I am going to take the tariffs off Irish whiskey.”

Irish whiskey is currently subject to the 10% tariff applied to EU wine and spirits entering the United States. The rate was initially set at 15% under the EU-U.S. trade deal before being reduced to 10% in July as the Trump administration adjusted its tariff policy toward trading partners.

Trump did not provide an effective date for the tariff removal in his announcement, leaving Irish whiskey producers and U.S. importers waiting for formal action to implement the change.

The Irish Whiskey Association welcomed Trump’s announcement and said it would continue working with European and U.S. officials to restore a zero-for-zero tariff arrangement for beverage exports.

“Nothing exemplifies the US-Ireland trade relationship better than Irish Whiskey,” Irish Whiskey Association Director Eoin O’Caitin said, adding that the group looked forward to seeing the announcement fully implemented.

The association has pushed for the return of the previous zero-for-zero tariff arrangement, under which qualifying U.S. and EU spirits could be traded without tariffs.

The announcement comes as the Trump administration continues to reshape U.S. trade policy. Earlier this month, the White House announced a ban on certain Canadian alcoholic beverages and maintained 50% additional duties on other Canadian alcohol products.

For Irish whiskey producers, the U.S. is a major export market, making tariff relief an important issue for the country’s whiskey industry. The Irish Whiskey Association said it would continue pursuing tariff-free treatment for the wider drinks sector rather than limiting the effort to whiskey.

President Donald Trump gestures while boarding Air Force One on Sept. 7 at Morristown Airport in Morristown, New Jersey. (AP Photo/Julia Demaree Nikhinson)

The Distilled Spirits Council of the United States is calling for a negotiated end to the Canada-U.S. spirits trade dispute after President Donald Trump ordered certain Canadian alcoholic beverages excluded from U.S. imports.

Chris Swonger, president and CEO of DISCUS, said in a statement Tuesday night that American distillers have absorbed much of the fallout from the trade fight since Canadian provinces began removing U.S. spirits from retail shelves in March 2025.

“For more than a year and a half, American distillers have shouldered the brunt of this trade dispute,” Swonger said.

The White House announced Tuesday that certain alcoholic beverages classified as products of Canada will be banned from entering the U.S. beginning Sept. 29. The action escalates the 50% tariffs imposed on certain Canadian alcohol imports in August.

Swonger said the provincial restrictions had a major effect on U.S. spirits exports to Canada, which fell more than 70% year over year from the beginning of the retaliatory restrictions in March 2025 through December 2025, according to DISCUS. The trade group said exports to Canada declined from $203 million during March-December 2024 to $60 million during the same period in 2025.

The restrictions began as a Canadian response to U.S. tariffs on Canadian goods. Canadian provinces removed American spirits from retail shelves in March 2025, with Alberta and Saskatchewan later restoring access. DISCUS said those two provinces remain the only ones to have lifted their bans.

Despite the latest escalation, Swonger said DISCUS wants the two countries to negotiate a solution rather than continue adding tariffs and import restrictions.

“We urge leaders on both sides of the border to reach a negotiated solution that restores U.S. spirits to retail shelves throughout Canada and returns the spirits sector to a permanent zero-for-zero tariff framework,” he said.

The “zero-for-zero” verbiage refers to the long-standing treatment of spirits traded between the U.S. and Canada without tariffs. DISCUS has repeatedly called for its restoration since the provincial bans began. In 2024, Canada was the second-largest export market for U.S. spirits, with American producers shipping $221 million worth of spirits to the country, according to DISCUS.

DISCUS reported that U.S. spirits exports overall fell 3.8% in 2025 to $2.37 billion, while exports excluding Canada increased 2.5%.

The latest U.S. action follows months of escalating measures.

The Trump administration imposed a 50% additional duty on certain Canadian alcohol products in August after previously delaying the tariffs for three days. The White House said Canada had not removed what it described as discriminatory restrictions on U.S. alcoholic beverages.

The administration’s Tuesday proclamation says the new import ban will apply to certain Canadian-origin alcoholic beverages beginning at 12:01 a.m. ET on Sept. 29. Products subject to the ban that entered the U.S. before that date but had not yet been entered for consumption or withdrawn from a warehouse will remain subject to the 50% duty instead.

President Donald Trump delivers remarks during a “Steel Across America” event to commemorate the 25th anniversary of Sept. 11, 2001, on the Ellipse near the White House in Washington, D.C. on Sept. 8. (Photo: Francis Chung/POLITICO via AP Images)

The Trump administration will ban certain Canadian alcoholic beverages from entering the United States beginning Sept. 29, escalating an already bitter trade dispute over alcohol between the two countries.

President Donald Trump signed a proclamation Tuesday ordering specified Canadian alcohol products that are currently subject to a 50% tariff to be excluded from U.S. imports beginning at 12:01 a.m. Eastern time on Sept. 29. The ban applies to products listed in an accompanying annex and does not cover every Canadian alcoholic beverage.

The annex covers a wide range of alcohol tariff classifications, including beer, wine, cider, spirits, Scotch and Irish whisky, bourbon, rye whisky, rum, vodka, gin, tequila and mezcal.

What Canadian Alcohol Is Banned?

The annex includes beer made from malt when packaged for direct consumption. Wine categories covered include sparkling grape wine and numerous still grape wines, including products in containers of 2 liters or less, as well as certain larger containers. Some larger-volume wine classifications are covered only when packaged in bottles, cans, boxes, kegs or similar direct-to-consumption containers.

The ban also covers packaged cider, prune wine, rice wine or sake, effervescent wine and other specified fermented beverages.

The spirits section is broad but relies on specific tariff classifications. It includes:

• Pisco and singani
• Certain grape brandies
• Irish and Scotch whiskies
• Bourbon
• Rye whisky
• Other specified whiskies
• Rum and tafia
• Gin and genever
• Vodka
• Liqueurs and cordials
• Bitters
• Slivovitz and other brandies
• Tequila
• Mezcal

Several classifications have limits based on container size or the value of the product per liter, while other classifications are limited to packaged products.

The White House says the product descriptions in the annex are informational and do not independently determine the scope of the action. The applicable Harmonized Tariff Schedule classifications and listed scope limitations control, with questions about individual classifications directed to U.S. Customs and Border Protection.The new restrictions build on Trump’s July proclamation imposing 50% duties on certain Canadian alcoholic beverages.

The new restrictions build on Trump’s July proclamation imposing additional 50% duties on certain Canadian alcoholic beverages.

That earlier action accused Canada of discriminating against U.S. alcohol through provincial and territorial restrictions on American beer, wine and spirits. The administration said those measures disadvantaged U.S. commerce compared with alcohol from other countries.

The additional duties were initially scheduled to take effect Aug. 19 but were temporarily suspended for three days after Canada expressed a commitment to address the issue. The suspension ended Aug. 22, when the 50% duties took effect.

The White House said Canada failed to remove what the administration considers discriminatory treatment of U.S. alcohol.

“On August 21, 2026, Canada reneged on its commitment, ceased negotiating in good faith, and did not remove the discrimination or unreasonable and unequal imposition at issue,” the proclamation reads.

The proclamation specifically points to Saskatchewan’s decision to impose its own 50% levy on U.S. alcoholic beverages, which took effect Sept. 8, as an example of what the administration describes as additional Canadian retaliation.

The proclamation says the administration now considers excluding certain Canadian alcohol products from the U.S. market to be in the interests of the United States and the public.

The new proclamation does not replace the entire 50% tariffs. Instead, certain products are being moved from the 50% additional duty to the import ban, while other Canadian products remain subject to the tariff framework.

A separate proclamation signed Tuesday modifies the scope of Canadian alcohol products subject to the 50% duty. That change takes effect Sept. 15 and specifies which products remain subject to the additional duty and which are removed from that duty. For products covered by the new import ban, those imported before Sept. 29 but not yet withdrawn from a warehouse for consumption before the deadline, remain subject to the 50% duty established under the earlier proclamation.

President Donald Trump departs a campaign rally for Sen. Darline Graham, R-S.C., at the Myrtle Beach Convention Center in Myrtle Beach, S.C., Friday, Aug. 21, 2026. (AP Photo/Jacquelyn Martin)

In the wake of the news of the trade talks between the U.S. and Canada falling apart, Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said the tariffs are the result of Canadian provinces continuing to keep U.S. spirits off retail shelves more than a year after the restrictions were introduced.

“We appreciate the administration’s recognition that American distillers have been unfairly targeted by these Canadian provincial sales bans,” Swonger said in a statement.

The 50% tariff follows a long-running trade dispute between the two countries that has increasingly ensnared the beverage alcohol industry.

Canadian provinces began removing U.S. spirits from retail shelves in March 2025 in retaliation for tariffs imposed by President Donald Trump on Canadian goods. Alberta and Saskatchewan have since lifted their restrictions, but the bans remain in place elsewhere in Canada.

According to DISCUS, U.S. spirits exports to Canada fell by more than 70% year over year from March through December 2025, after the provincial bans went into effect.

“This discriminatory treatment of U.S. spirits products has persisted for more than a year and a half, causing significant economic harm to our industry,” Swonger said.

The group said the continued restrictions ultimately contributed to the new tariff, arguing that Canadian provinces had refused to restore access for American spirits.

“It is unfortunate that the Canadian provinces’ continued refusal to return U.S. spirits products to store shelves has led to this outcome,” Swonger said.

The development comes just days after Canadian Prime Minister Mark Carney urged the country’s premiers to consider putting American alcohol back on liquor store shelves as officials attempted to negotiate a broader trade agreement with the Trump administration.

The potential return of American alcohol to Canadian shelves has become one of the most visible pressure points in the broader trade dispute. While Canadian producers have benefited from increased consumer attention toward domestic wine and spirits, American producers have lost access to one of their most important export markets.

Swonger said the spirits industry now wants both countries to negotiate a solution that restores that market access.

“We encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for U.S. spirits throughout Canada and returns spirits trade to a zero-for-zero tariff framework,” he said, reiterating a sentiment he has expressed multiple times throughout this saga.

For American distillers, that would mean restoring access to Canadian consumers while eliminating the retaliatory tariffs that now threaten Canadian spirits entering the U.S.

The dispute also highlights the unusual position of the spirits industry in the broader U.S.-Canada trade fight: American distillers are pushing the Trump administration to pressure Canada while simultaneously calling for an end to the tariffs that pressure creates.

For now, the Canadian alcohol ban and the new 50% tariff remain closely linked, leaving the return of American spirits to Canadian shelves as a potential bargaining chip in the next stage of negotiations.

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.

Maker’s Mark whisky on display in a retail store in Edmonton, Canada, on Feb. 4, 2025. (Photo: Artur Widak/NurPhoto via AP)

American alcohol has been unavailable on Ontario liquor store shelves for well over a year, and experts say that the boycott may be costing local taxpayers as much as $20 million.

Michael Armstrong, an associate professor at Brock University in Ontario, Canada, told CBC News that his province has shelved around $79.1 million worth of U.S. alcohol. Factoring in warehousing, insurance and security, Armstrong says Ontario is likely paying around a quarter of that just to keep bottles out of liquor stores.

“We’re willing to spend $20 million a year to not sell your booze,” Armstrong told CBC. “Is that worthwhile? I have no way to judge that.”

The Liquor Control Board of Ontario has not confirmed the $79.1 million figure nor the estimated $20 million cost of storage. Other numbers, however, suggest that these estimates may be in the lower end of the ballpark. Ontario imported roughly $965 million worth of American booze per year prior to its current boycott. Though the LCBO has remained tight-lipped, it confirmed in March that roughly $2 million worth of booze has expired since March 2025, mostly including beer, ready-to-drink beverages and wine.

Between March and February 2025, eight of Canada’s ten provinces issued partial or full bans on American-made alcohol in response to the Trump administration’s tariff threats. Ontario was one of the few to announce a blanket prohibition. Provinces like British Columbia announced a ban on alcohol produced in Republican-voting “red states,” while others targeted symbolically American brands like Bud Light, Jack Daniel’s and White Claw.

According to the Distilled Spirits Council of the United States, the move precipitated a 85% drop in American alcohol exports to Canada. Though some provinces have since rescinded their bans, heavy hitters like Ontario have remained steadfast. The state-owned LCBO is one of the largest buyers of alcohol worldwide, and is reported to have grossed $7.37 billion in 2025.

Negotiations have ground to a standstill over the past few months. At a news conference in April, Canadian Prime Minister Mark Carney said that the alcohol ban could end “quickly,” if only the Trump administration repealed its current mix of tariffs.

“You know what’s an irritant? A 50% tariff on steel and aluminum, 25% on automobiles, all of the tariffs on forest products. Those are more than irritants. Those are violations of our trade deal, OK?” Carney said. “We’re looking to negotiate something mutually agreeable, and there will be adjustments there when we make progress on that.”

Britain’s King Charles III listens as President Donald Trump speaks during a State Visit arrival ceremony on the South Lawn of the White House, Tuesday, April 28, 2026, in Washington. (AP Photo/Alex Brandon, File)

President Donald Trump’s decision to remove the 10% tariff on Scotch whisky imports, announced Thursday, is drawing widespread industry support, with producers, trade groups and investors framing the move as more than a short-term boost to sales.

The rollback, announced following the U.S. visit of King Charles III and Queen Camilla, restores tariff-free trade between the U.S. and U.K., reopening what is widely considered the most valuable export market for scotch.

The U.S. accounts for the largest share of Scotch whisky exports by value, while also serving as a key destination for Kentucky bourbon barrels, which are widely used in scotch maturation.

The Kentucky Distillers’ Association highlighted the importance of reciprocal trade for American producers.

“The Kentucky Distillers’ Association applauds President Trump’s decision to remove tariffs and restrictions on Scotch whisky, the trade group wrote. “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. ”

Industry leaders were quick to welcome the move. The Scotch Whisky Association called it “a significant boost” to the sector, noting that distillers can “breathe a little easier” in their most valuable export market while reinforcing long-standing ties with U.S. producers.

Stateside, the Distilled Spirits Council of the United States said the removal of the tariff would be a “major victory” for hospitality businesses and help restore a “proven zero-for-zero model” of fair and reciprocal trade, adding that the decision provides much-needed certainty for producers looking to grow and invest.

Major suppliers echoed that sentiment. Nodjame Fouad, CEO of the Gold Brand Unit at Pernod Ricard, described the development as “a welcome progression” that will support teams and partners on both sides of the Atlantic, while underscoring the importance of stable, open trade between the two markets.

Beyond immediate trade benefits, analysts say the decision could reshape the long-term economics of whisky — particularly for investors.

John Kennedy, managing director at Decant Index, said the tariff removal effectively “resets the long-term pricing curve” for premium scotch, emphasizing that the U.S. remains the key price-setting market globally.

“The U.S. isn’t just another export destination — it’s the price-setting market for premium whisky globally,” Kennedy said. “You’re not buying today’s market — you’re buying where that cask exits in five, 10 or 15 years.”

Kennedy noted that tariff-free access improves liquidity and expands the buyer pool for aged stock and single-cask releases, while also strengthening exit valuations over time.

He added that the impact could extend further across the whiskey ecosystem. Increased demand in the U.S. may drive higher bourbon production, which requires new charred oak barrels, ultimately boosting the supply of ex-bourbon casks used in scotch maturation.

While broader industry challenges remain, including uneven demand and macroeconomic pressure, the tariff rollback is widely viewed as a structural shift that strengthens transatlantic trade while reshaping the long-term outlook for premium whisky and cask investment.

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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