Exports of American liquor products have seen a significant downturn amid ongoing trade tensions, with Canadian exports plummeting far more than any other international market.
US spirits exports fell 9% in the 2Q25, according to a report released Monday by the Distilled Spirits Council of the United States (DISCUS). The decline marked a sharp contrast after a record year for exports. From April to June, overseas liquor sales totaled US$593.6 million, US$57.4 million less than the US$651 million recorded in the same period of 2024, DISCUS reported.
Canada experienced the steepest decline, with US spirits exports dropping 85% during the quarter. Canadian provinces pulled American alcohol products from government-run liquor store shelves in early March in retaliation after US President Donald Trump imposed sweeping tariffs on Canada. Liquor boards also stopped placing new orders for US products. Although Canada lifted its retaliatory tariffs in September, both retailers and consumers remain cautious about purchasing American-made alcoholic beverages.
Chris Swonger, President, DISCUS, noted growing concern that international consumers are increasingly turning to domestically produced spirits or imports from countries other than the United States, signaling a shift away from major American brands. The trade association represents leading spirits manufacturers, including the Irish whiskey producer Jameson, Pernod Ricard, and Brown-Forman, the maker of Jack Daniel’s.
An Ipsos poll released last month found strong support for the Buy Canadian movement: 56% of respondents said they had recently purchased Canadian products or investments because of the trade war, while nearly 60% said they actively avoided American options. Moreover, 82% of Canadians said they plan to continue prioritizing Canadian-made products even after the trade dispute ends.
Among other key buyers, exports to the European Union, the industry’s largest market, fell 12% to US$290.3 million, while shipments to the United Kingdom declined 29% to US$26.9 million and those to Japan dropped 23% to US$21.4 million. These, along the Canadian market account for 70% of US liquor exports.
The report warns that American distillers could face mounting pressure and financial strain if trade disruptions persist, emphasizing the increasing importance of exports amid a stagnating domestic market, particularly for American whiskey. The iconic US beverage faces slowing domestic sales and record-high inventory levels, which have tripled since 2012 to reach 5.6 billion L in 2024.
The decline in sales varied by category, with quarterly drops of 13% for whiskey, 14% for vodka, 15% for liqueurs, and 12% for brandy, the report noted. However, it added that these losses were partially offset by increased sales to other countries, including Mexico, Australia, Brazil, Singapore, and South Korea.
Swonger emphasized the spirits industry is deeply interconnected, meaning US tariffs affect the sector as a whole. “The unfortunate decision to remove American spirits from Canadian retail shelves is not only harming US distillers, but it is also needlessly reducing revenues for the provinces and placing unnecessary burdens on Canadian consumers and hospitality businesses,” he said in a statement. Swonger urged the Trump administration to help facilitate a lasting return to tariff-free trade.
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