Trade Friction Cuts Into U.S. Spirits Exports

A combination of ongoing trade friction, retaliatory actions, and a sagging economy combined to cut U.S. spirits exports in 2025 by 3.8%, according to new data released today by the Distilled Spirits Council of the United States.

The ongoing trade war with Canada had a major impact on overall exports. Only two Canadian provinces still sell American spirits, while the rest are boycotting them through provincial liquor monopolies. The boycott started a year ago in response to American tariffs imposed on Canada for failing to stem the supply of fentanyl crossing the border illegally. Exports to Canada are off by 70% since the ban started last March, and when one excludes Canada from the overall export data, U.S. spirits exports increased by 2.5% for all of 2025.

In addition, the threat of retaliatory tariffs in the European Union led some producers to front-load shipments to Europe in late 2024. The EU’s retaliatory 30% tariff on American whiskies is currently suspended until this August while the two trading partners negotiate over steel and aluminum tariffs. Whiskey exports to the 27-nation bloc were off by 35% in 2025.

Overall spirits exports totaled $2.37 billion in 2025, according to the DISCUS report. Despite the setbacks, the number represents a fivefold increase in export sales since 2000, when export sales were at $478 million.

“The decline of U.S. spirits exports in 2025 underscores the industry’s vulnerability to uncertainty in the global trade environment and the vital importance of restoring the permanent return to zero-for zero tariffs on spirits products,” said DISCUS President & CEO Chris Swonger. “When American spirits compete on a level playing field, exports grow, jobs are created and local economies thrive.”

Growth in other markets helped offset the loss of sales to Canada and Europe. Exports to the rest of the world rose 13.2% on gains in Brazil, the UK, Australia, and emerging markets.