An escalating trade war between the U.S. and Canada saw American-made spirits banned from sale in Ontario. Distilleries in Kentucky are bracing for the fallout.

Canada's retaliation against U.S. tariffs hits Kentucky's bourbon industry hard, with potential ripple effects across the state's economy.

"The tariffs right now are going to affect us, but farmers are resilient and they plan for this," Bruce Langley, with Langley Farms, said.

Forman’s third quarter earnings call Wednesday, CEO Lawson Whiting called Canada’s response to a 25% tariff, “disproportionate.”

Governor Andy Beshear is asking Canadian leaders to reconsider tariffs on Kentucky goods, particularly the state's signature spirit.

Canadian provinces have restricted American alcohol sales as part of retaliatory measures against President Trump’s tariffs.

Experts are warning about potential fallout for the bourbon industry due to President Trump’s tariffs on Canada, Mexico, and China.