Most Canadian alcoholic drinks are set to disappear from US shelves under a new import ban announced by President Donald Trump – but Crown Royal whisky may have found a route around the restrictions.
The measures, which also cover selected dairy products and motorcycles, will take effect at 12.01am on September 29, following Canada’s retaliatory tariffs on about $20 billion of US goods. The White House says the restrictions are a response to what it describes as continued discrimination against American exports. ([whitehouse.gov](https://www.whitehouse.gov/presidential-actions/2026/09/excluding-certain-canadian-alcoholic-beverages-from-importation-into-the-united-states-in-response-to-continued-discrimination-against-the-commerce-of-the-united-states-with-respect-to-alcoholic-bever/))
Unlike tariffs, which raise costs as goods move through supply chains, an import ban prevents the affected products from entering the country. Existing stock can still be sold, meaning the impact is likely to become apparent as supplies run down.
Wendong Zhang, an economist at Cornell University’s SC Johnson College of Business, said tariffs took time to reach consumers, while a ban effectively removed a product from the market. Brett House of Columbia Business School said the measures would either cut off access or increase the cost of continuing to buy the products, leaving consumers to choose domestic alternatives that might offer less satisfaction.
Crown Royal, one of the best-known Canadian whisky brands in the United States, could be better placed than its rivals because its American supply chain has already been partly localised.
The whisky is still mashed, distilled and aged in Canada, but its owner, Diageo, has been moving some bottling activity closer to US customers. The company announced that its Amherstburg facility in Ontario would close by February 2026, while production for the American market would be supported by its wider North American network, including a new manufacturing site in Montgomery, Alabama. ([diageo.com](https://www.diageo.com/en/news-and-media/press-releases/2025/diageo-plc-announces-strategic-changes-to-increase-resiliency-of-north-american-manufacturing-operations))
The wording of the White House’s alcohol annex may offer Crown Royal an additional advantage. It lists Canadian rye whisky and other whiskies in containers holding no more than four litres, while packaged whisky in containers larger than four litres is treated differently under the scope of the ban. ([whitehouse.gov](https://www.whitehouse.gov/wp-content/uploads/2026/09/ANNEX-I-ALCOHOL.pdf))
That could allow Canadian-made whisky to cross the border in bulk before being bottled in the United States, although the precise treatment of Crown Royal shipments will depend on how US Customs and Border Protection implements the proclamation. The agency has been authorised to issue the rules and guidance needed to administer the ban. ([whitehouse.gov](https://www.whitehouse.gov/presidential-actions/2026/09/excluding-certain-canadian-alcoholic-beverages-from-importation-into-the-united-states-in-response-to-continued-discrimination-against-the-commerce-of-the-united-states-with-respect-to-alcoholic-bever/))
Diageo did not immediately comment on the effect of the restrictions on Crown Royal. The company has previously said that whisky destined for Canada and non-US export markets will continue to be bottled in Quebec, while its broader manufacturing changes are intended to make the North American supply network more resilient. ([diageo.com](https://www.diageo.com/en/news-and-media/press-releases/2025/diageo-plc-announces-strategic-changes-to-increase-resiliency-of-north-american-manufacturing-operations))
