American Whiskey Sales Sink in Europe and Canada

Exports of American distilled spirits have dropped sharply in the second quarter of 2025, following a record year in 2024. According to a new report from the Distilled Spirits Council of the United States (DISCUS), total exports fell by 9% compared to the same period last year. The decline is linked to ongoing trade tensions, which have affected key international markets for U.S. spirits producers.

The report, released this week, highlights significant decreases in exports to the European Union, Canada, the United Kingdom, and Japan. These four markets accounted for 70% of the total value of U.S. spirits exports in 2024, with the EU alone representing half of all shipments. In 2025, exports to the EU dropped by 12%, reaching $290.3 million in the second quarter. Exports to the UK fell by 29% to $26.9 million, while shipments to Japan decreased by 23% to $21.4 million.

The most dramatic change occurred in Canada, where U.S. spirits exports plunged by 85%, falling below $10 million for the quarter. Sales of American spirits in Canada were down 68% in April 2025 alone. Meanwhile, sales of Canadian-made and other imported spirits in Canada rose by about 3.6% each during the same period.

Chris Swonger, president and CEO of DISCUS, said these figures are troubling for American distillers after a record-breaking year in 2024. He pointed out that persistent trade disputes are having an immediate negative impact on exports. Swonger also noted growing concerns that international consumers are increasingly choosing domestically produced or non-U.S. imported spirits over American brands.

The report shows double-digit declines across several major spirit categories. American whiskey exports fell by 13%, vodka by 14%, rum by 6%, brandy by 12%, and cordials by 15%. Swonger emphasized that international markets are becoming more important for U.S. whiskey producers, who are facing slower domestic sales and record-high inventory levels.

Since 2012, inventories of American whiskey have tripled, reaching nearly 1.5 billion gallons of alcohol by the end of 2024. In contrast, domestic sales and exports combined totaled only about 103 million gallons last year.

Swonger called for renewed efforts to secure tariff-free trade with key partners such as the EU and UK. He said that tariffs on imported spirits have far-reaching consequences for the entire industry, which has long been a model for fair and reciprocal trade. Swonger urged President Biden’s administration to work toward restoring lasting tariff-free trade with longstanding partners to support continued growth and stability in the sector.

The latest data from DISCUS underscores how global trade policies continue to shape the fortunes of American distillers at a time when they are seeking new opportunities abroad amid slowing demand at home. The industry is watching closely as negotiations continue between Washington and its trading partners over tariffs and market access for U.S.-made spirits.