American Spirits Exports Plunge Amid Trade Tensions and Shifting Global Markets

Exports of American distilled spirits dropped sharply in the second quarter of 2025, falling 9% compared to the same period last year, according to a new report from the Distilled Spirits Council of the United States (DISCUS). The decline follows a record-setting year for U.S. spirits exports in 2024 and is attributed mainly to ongoing trade tensions with key international partners.

The report, released this week, highlights that the downturn was most pronounced in four major markets: the European Union, Canada, the United Kingdom, and Japan. These regions together accounted for about 70% of all U.S. spirits exports by value in 2024. The European Union alone represented half of total exports last year.

Canada saw the steepest drop, with U.S. spirits exports plunging by 85% in the second quarter, falling below $10 million. Exports to both the United Kingdom and Japan each declined by more than 23%, while shipments to the European Union were down 12%. The report notes that these declines are not isolated incidents but reflect a broader shift in consumer behavior and market access challenges.

Chris Swonger, president and CEO of DISCUS, said that persistent trade disputes are having an immediate and negative impact on American distillers. He pointed out that international consumers are increasingly choosing domestically produced spirits or imports from countries other than the United States. This trend is especially visible in Canada, where sales of U.S. spirits fell by 68% in April 2025, while sales of Canadian and other imported spirits rose by about 3.6% each.

Although Canada removed its retaliatory tariff on U.S. spirits on September 1, most provinces continue to ban American spirits from store shelves. Canada remains the only major trading partner to have imposed such direct restrictions on U.S. spirits.

The export decline affected several categories of American spirits. Brandy exports fell by 12%, American whiskey by 13%, vodka by 14%, and cordials by 15%. Rum exports dropped by 6%. The downturn is particularly concerning for American whiskey producers, who are already facing slowing domestic demand and record-high inventory levels.

Since 2012, inventories of American whiskey have tripled, reaching nearly 1.5 billion proof gallons at the end of 2024. In contrast, domestic sales and exports totaled only about 58 million and 45 million proof gallons respectively last year. This imbalance means that producers are holding more than a decade’s worth of inventory at current sales rates.

Swonger emphasized that international markets are becoming increasingly important for American whiskey makers as domestic sales stagnate. He called for renewed efforts to secure zero-tariff agreements with key trading partners like the EU and UK, warning that tariffs on imported spirits have wide-reaching consequences for the industry.

The report also points out that overall distilled spirits supplier sales in the U.S. have been flat since 2022, declining slightly from $37.7 billion in 2023 to $37.2 billion in 2024 when adjusted for inflation. With little growth at home and shrinking opportunities abroad, U.S. distillers face mounting financial pressure.

Industry leaders say that resolving trade tensions is critical not just for distillers but for the broader U.S. manufacturing sector, which relies on stable export markets to support jobs across dozens of states. The current environment has created uncertainty for producers and threatens future investment in one of America’s signature industries.

The data from DISCUS underscores how quickly global trade disputes can disrupt established markets and alter consumer preferences. As American distillers navigate this challenging period, many are urging policymakers to prioritize fair trade agreements and restore access to key international markets before further damage is done to an industry long seen as a model for reciprocal trade relations.