Exports of American whiskey, other spirits down as Trump’s trade war persists
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- U.S. distilled spirits exports declined sharply in Q2 2025, trimming global sales
- Exports to Canada, UK, Japan and EU plunged, eroding 70% of prior market share
- Industry group urges return to zero-for-zero tariffs to restore demand and inventories
Exports of American distilled spirits have plummeted this year, according to new data from an industry trade group.
Sales declines have been particularly steep in the key markets of Canada, the European Union, the United Kingdom and Japan, according to the Distilled Spirits Council of the U.S.
Overall, spirits exports are down 9% for the months of April, May and June, from $651 million in the second quarter of 2024 to $593.6 million in the same period of 2025, according to the Distilled Spirits Council.
The trade industry group is calling for a return to “zero for zero” tariffs and ending President Donald Trump’s ongoing trade war.
“After celebrating a record year for U.S. spirits exports in 2024, this new data is very troubling for U.S. distillers,” said Chris Swonger, DISCUS president and CEO. “Persistent trade tensions are having an immediate and adverse effect on U.S. 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.”
The new data comes about six months into a trade war involving Trump and American whiskey’s biggest foreign trading partners. In response, bourbon makers have slowed production to the lowest level since 2019. In August, Brown-Forman reported that whiskey sales to Canada are down 60%.
Exports to Canada are down 85% compared with the same quarter of 2024, now dropping below $10 million in total. Canada recently ended retaliatory tariffs, but many provinces are still boycotting American whiskey, bourbon and other spirits.
Canada pulled all American whiskey off shelves in March after comments by President Trump about “annexing” the country.
Exports to the UK are down 29%, to Japan down 23%, and to the EU are down 12%, DISCUS reported in a news release.
Together, these markets accounted for 70% of U.S. spirits exports in 2024.
Exports are down for several spirits categories by double digits, including American whiskey, down 13%. American whiskey, which includes Kentucky bourbon, had topped $313 million in the second quarter of 2024; it’s now down to about $273 million.
The news comes as many bourbon distillers are facing declining demand at home as well.
Inventories are rising as Kentucky bourbon makers see demand for their products slowing. And now overseas options are drying up as well, DISCUS said.
“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,” Songer said. “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.”
Last year, Kentucky exported $751 million in spirits, second only to Tennessee, which is the home of global giant Jack Daniel’s (owned by Louisville-based Brown-Forman).
Those numbers are expected to be down significantly for 2025.
