The trade war with Canada is hammering American whiskey and bourbon makers, and a new tariff break for Irish whiskey adds more competition at home — bad news for US distillers, especially Kentucky bourbon.

• Trade talks between the US and Canada collapsed, and the trade war escalated again in recent weeks.
• All but two Canadian provinces have pulled American spirits from their shelves entirely.
• US whiskey exports to Canada fell 70% year-over-year, wiping out most of that market.
• Trump answered with a ban on Canadian alcohol imports set to start later this month.
• At the same time, Trump dropped the 10% tariff on Irish whiskey during a visit to Ireland, so tariff-free Irish whiskey will now compete directly with American brands at home.

Outlook: With the Canadian market closed and cheaper Irish imports arriving, American distillers face more lost sales and possible permanent closures unless the Canada dispute is settled soon.