Following a stand-out period for distilled spirits exports in 2024, exports of American spirits fell 9% year-on-year in the second quarter, driven by ongoing trade tensions, according to a new report by the Distilled Spirits Council of the United States (DISCUS).

The American Distilled Spirits Exports 2025 Mid-Year Report showed declines were particularly steep in exports to key markets including the European Union (EU), Canada, United Kingdom (UK) and Japan. The EU accounted for half of all US spirits exports in 2024, and collectively, these four markets represented 70% of total exports by value.

Exports to Canada plunged by 85%, dropping below $10 million in the second quarter of 2025. Exports to the UK and Japan each declined by more than 23%, while exports to the EU were down 12%.

Exports of several spirits categories posted double-digit declines, including brandy (-12%), American whiskey (-13%), vodka (-14%), and cordials (-15%), while exports of rum declined 6%.

DISCUS President and CEO Chris Swonger said: “After celebrating a record year for US spirits exports in 2024, this new data is very troubling for US distillers.

“Persistent trade tensions are having an immediate and adverse effect on US spirits exports. There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands.”

Swonger said nowhere is this shift more pronounced than in Canada, where US spirits sales in Canada declined 68% in April 2025 whereas sales of Canadian and other imported spirits rose around 3.6% each.

Canada removed its retaliatory tariff on US spirits on September 1, but the majority of Provinces continue to ban American spirits from their shelves. Canada remains the only key trading partner to retaliate against US spirits.

Swonger stated that international markets are becoming increasingly vital for American whiskey producers who are facing a slowdown in domestic sales and record-high inventory levels. Since 2012, American whiskey inventories have tripled, reaching nearly 1.5 billion proof gallons by the end of 2024. In contrast, domestic sales and exports totaled only 58 million and 45 million proof gallons, respectively.

“With domestic demand slowing, it is critically important that US distillers have the certainty of zero-for-zero tariffs with our key markets, including the EU and UK,” said Swonger.

“The spirits sector is highly interconnected and, as a result, tariffs on imported spirits have wide-reaching consequences on the industry as a whole. For decades, the spirits sector was the model for ‘fair and reciprocal’ trade. We urge the President to help facilitate a lasting return to tariff-free trade with our longstanding trading partners to ensure the continued growth and vitality of this great industry.”