U.S. Spirits Exports Fall as Whiskey Shipments Sink in Europe

U.S. exports of distilled spirits fell 3.8% in 2025 to $2.37 billion, according to a report released by the Distilled Spirits Council of the United States, as trade tensions and weaker demand in key markets weighed on shipments of American whiskey and other spirits.

The decline came after several years in which exports had helped support distillers facing slower growth at home. The council said the drop reflected a difficult global trading environment, with economic uncertainty, shifting consumer demand and policy changes affecting sales in major overseas markets.

The sharpest setback came in the European Union, where exports of American whiskey fell 35% to $454 million. The council linked that decline to trade barriers and tariff-related pressures that have made U.S. whiskey less competitive against local producers and other international brands. The European market has long been one of the most important destinations for American whiskey, especially bourbon and Tennessee whiskey, making the drop a significant concern for distillers.

Canada also played a role in the overall decline, according to the report, though the council did not say it was the only factor behind the weaker export performance. Other categories of spirits held up better than whiskey, but not enough to offset the losses in that segment.

Industry officials have argued that restoring a “zero-for-zero” tariff arrangement, under which both sides eliminate duties on spirits, would help stabilize trade and improve access to foreign markets. Without that kind of agreement, the council warned, distillers could face more pressure in 2026 as they try to protect margins and maintain shelf space abroad.

The report comes at a time when U.S. spirits makers are also dealing with changing drinking habits at home and rising competition from imported brands overseas. For many producers, exports remain an important source of growth, especially for premium products such as bourbon, rye whiskey and craft gin.

The council said it is working with policymakers and trade partners to push for lower barriers and broader market access, while distillers continue to look for new buyers in Asia, Latin America and other regions where demand for American spirits has been growing more slowly but remains promising.