In recent months, U.S. spirits exports have faced significant declines. A report from the Distilled Spirits Council of the United States (DISCUS) highlighted these troubling trends in key markets.
Major Declines in U.S. Spirits Exports
During the second quarter of 2025, exports of U.S. spirits fell by 9%. This downturn follows a strong performance in 2024. Notably, the industry has experienced steep drops in various regions, which include:
- Canada: Exports plummeted by 85%, dropping to under $10 million.
- European Union: Exports decreased by 12% to $290.3 million.
- Britain: Shipments fell by 29% to $26.9 million.
- Japan: Exports decreased by 23% to $21.4 million.
Impact of Trade Tensions
DISCUS attributes these declines to ongoing trade tensions and tariffs. Many Canadian provinces have imposed restrictions on American spirits following U.S. tariffs. Although Canada removed retaliatory tariffs in September, these barriers have previously caused considerable damage.
According to Chris Swonger, President of DISCUS, there is a rising trend of consumers selecting non-U.S. brands. This shift is attributed to a growing preference for domestically produced spirits in foreign markets.
Concerns Over Anti-American Sentiment
Further complicating the situation, other consumer goods industries also report significant worries. Companies like Levi Strauss and McDonald’s have noted rising anti-American sentiment. These sentiments were particularly strong in Northern Europe and Canada, impacting their brands.
Industry Challenges Ahead
The challenges for the U.S. spirits industry extend beyond international markets. American whiskey producers are also experiencing stagnant domestic sales and record-high inventory levels. The interconnected nature of the spirits sector means that tariffs affect the entire industry.
Swonger has called on the Biden administration to aim for a restoration of zero-for-zero tariffs with trading partners. Without policy changes, the future of U.S. spirits exports remains uncertain.
