Sagamore Spirit, the Baltimore-based craft distillery known for its rye whiskey, is feeling the full weight of Canada’s prohibition on American-made alcohol—a ripple effect from a broader trade dispute that began earlier this year.

Until recently, Canada accounted for about 10% of Sagamore Spirit’s export business. That market has now vanished entirely. CEO Robert Cullins says the company expects to lose roughly $2 million in sales this year, the equivalent of a full container shipment—about 1,200 nine-liter cases of rye whiskey.

“For a small craft distillery like ours, a couple of million dollars is pretty significant,” Cullins noted. The loss is particularly painful given the time it takes to secure Canadian market approval—often up to three years for a single product.

The ban stems from a decision by Canadian provinces, which control alcohol imports and distribution, to halt orders of U.S. spirits, beer, and wine. The move came in response to U.S. tariffs that targeted Canadian goods. In Ontario, where the Liquor Control Board once sold hundreds of millions of dollars’ worth of American alcohol annually, shelves are now stocked almost exclusively with Canadian brands.

While domestic producers such as Maverick Distillery have seen sales rise, Sagamore and other American distillers are left with shipments stalled in storage and no clear path back to Canadian consumers.

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