Fargo distillery caught in fight over tariffs and Canada’s ban on American liquor

FARGO (KVRR) – As the tariff wars continue to escalate, a Fargo distillery is among a number of American craft distillers getting caught in the middle of the fight.

American liquor exports plunged 85% nationwide this year as the majority of Canadian provinces continue to ban American spirits from store shelves.

“It is in response to both the tariffs and the sentiment that they (Canadians) have against us,” according to Joel Kath, owner of Proof Artisan Distillers in Fargo.

“Right now, you look at the Canadian traffic coming down to the U.S. and it just isn’t there–what is was two, three, four years ago.”

In the ultracompetitive world of micro distilleries, the sudden drop-off in exports is an unwelcome development. And Kath says in addition to Canadian policies, Canadian travelers are also contributing to the pain.

“We’ve got a lot of personal friends that come down quite often and when they come down to meet us, they’ll tell their friends, ‘Oh, we’re going down to Fargo’ and their friends tell them ‘you’re not going to buy anything are you?’ And they’re serious about it.”

Kath also says distributors that were purchasing pallets of his distillery’s Motorhead whiskey for export to Canada and Europe suddenly stopped communicating.

“Those entities across the borders stopped answering phone calls and they have completely ceased all contact. That’s lost revenue and lost product that we weren’t able to export.”

In addition to tariffs, Kath says THC-infused drinks and the expanded use of weight-loss drugs are also contributing to the decline of alcohol consumption.