Exports of U.S.-made liquor fell sharply in the second quarter of 2025 as tariffs imposed under President Donald Trump took hold, according to the Distilled Spirits Council of the United States.
Overall liquor exports declined 9% compared with the same period in 2024, the council said. Shipments to Canada plummeted 85%. Canada lifted its 25% tariff on U.S. alcohol in September.
The council noted that several Canadian provinces have maintained bans on American-made liquor despite the removal of many tariffs. Canada dropped the duties after reaching an agreement with the United States and Mexico to exempt alcohol and other products from trade penalties.
Canadian retaliation had targeted the U.S. alcohol industry partly because some of the biggest exporting states — Tennessee, Kentucky, Texas, Florida and Indiana — had backed Trump in the 2024 election.
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Exports to other key markets also declined: down 12% to the European Union, 29% to the United Kingdom and 23% to Japan.
Industry leaders say trade tensions continue to hurt producers.
“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, president and CEO of the Distilled Spirits Council. “Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports. There is growing concern that international consumers are increasingly opting for domestically produced spirits or imports from countries other than the United States, signaling a shift away from American spirits brands.”
