American distilled spirits exports tumbled in the second quarter of 2025, reversing gains from a record-breaking 2024. The sharp decline hits major categories, including American whiskey and vodka, with Canada showing the steepest drop at 85%.
U.S. Spirit Exports Face Headwinds in Key Trade Markets
Second-quarter data reveals widespread declines across critical markets for American distillers. Exports to the European Union, which accounts for half of all U.S. spirits shipments, fell 12% to $290.3 million.
The United Kingdom saw exports drop 29% to $26.9 million, while Japan recorded a 23% decrease to $21.4 million.
The Distilled Spirits Council of the United States (DISCUS) attributes these declines to ongoing trade disputes. “Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports,” said DISCUS President and CEO Chris Swonger.
Canada presents the most dramatic example of trade-related damage. While the country removed retaliatory tariffs on September 1, most provinces continue to ban American spirits from shelves. U.S. spirits sales in Canada plummeted 68% in April 2025, while Canadian and other imported spirits grew approximately 3.6% each.
Trade Barriers Threaten American Whiskey Producers
The export decline comes at a critical time for U.S. distillers facing domestic challenges. American whiskey inventories have tripled since 2012, reaching nearly 1.5 billion proof gallons by the end of 2024. Domestic sales totaled only 58 million proof gallons, while exports reached 45 million proof gallons.
Multiple spirits categories recorded double-digit drops in the second quarter. American whiskey exports fell 13%, vodka declined 14%, and cordials dropped 15%. Rum and brandy exports decreased 6% and 12% respectively.
The spirits industry has traditionally operated under zero-for-zero tariff agreements with major trading partners. These arrangements enabled American distillers to build substantial international market share over recent decades. The current disruptions mark a significant departure from this established trade framework.
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Industry leaders are calling for renewed diplomatic efforts to restore tariff-free trade.
“With domestic demand slowing, it is critically important that U.S. 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.”
