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Bourbon in Crisis as Trade War Escalates | Lexington News

Kentucky’s bourbon industry is reeling from a trade war that’s shut down its second-largest market—Canada. After Canadian provinces halted U.S. liquor imports in retaliation for earlier tariffs, the U.S. hit back with a 50% tax on Canadian whisky, effectively sealing the deal. Talks collapsed last week when the U.S. unveiled new terms Canada couldn’t accept, despite Prime Minister Carney’s last-ditch appeal to restore shelves. The fallout? Bourbon sits in warehouses, taxes stay local, and Kentucky—once behind the tariffs—is now paying the price. With no resolution in sight, the future of…

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