US spirits exports to Canada plummet 85% in Q2
Exports of American spirits plunged by double digits in all key markets during the second quarter (Q2) of 2025, with Canada suffering the largest drop.
The new American Distilled Spirits Exports 2025 Mid-Year Report by the Distilled Spirits Council of the US (Discus) revealed exports of American spirits fell by 9% to US$593.6 million in the second quarter of 2025.
Q2 exports of US spirits to Canada plummeted by 85% to US$9.6m, falling below the US$10m mark for the first time, according to the report.
US spirits sales in Canada plunged by 68% in April 2025, while sales of Canadian and other imported spirits rose by around 3.6% each.
Canada is a hugely important market for US spirits. In 2024, Canada imported US$221m worth of US spirits, making it the category’s second‐largest export market behind the EU.
Most Canadian provinces have continued to ban American spirits from retail shelves, despite the removal of a retaliatory tariff on US spirits on 1 September. Tensions between the two countries have given a boost to Canadian spirits, including locally made whisky.
Meanwhile, US spirits exports to the EU, which accounted for half of the category’s exports in 2024, fell by 12% to US$290.3m during Q2.
Exports of American spirits to the UK dropped by 25% to US$26.9m during the three months. Japan saw a decrease of 23% to US$21.4m.
Collectively, the EU, UK, Japan and Canada represent 70% of total US spirits exports by value.
The Discus report also noted double-digit drops across exports of several US spirits categories during Q2, including American whiskey (down 13%), vodka (down 14%), and brandy (down 12%). Rum reported a 6% decrease and cordials fell by 15%.
Consumers shun American spirits
The category’s performance is a stark contrast to last year when US spirits exports increased by nearly 10% in 2024, reaching a record US$2.4 billion, Discus revealed in April.
“After celebrating a record year for US spirits exports in 2024, this new data is very troubling for US distillers,” said Discus president and CEO Chris Swonger. “Persistent trade tensions are having an immediate and adverse effect on US 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 US, signalling a shift away from our great American spirits brands.”
Over the past two decades, international markets have boomed, with US spirits exports rising more than fivefold since 2000.
Exports of American whiskey declined by 5.4% in 2024, but still accounted for 54% of all US spirits exports, totalling US$1.3bn.
In 2024, domestic sales of American whiskey totalled only US$58m, Discus highlighted.
Earlier this year, the US and the UK agreed a free trade agreement that capped US tariffs on imports at 10%. The US and EU have inked a 15% tariff deal.
“With domestic demand slowing, it is critically important that US distillers have the certainty of zero-for-zero tariffs with our key markets, including the EU and UK,” Swonger added.
“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.”
The CEO of new trade body the American Whiskey Association (AWA), Michael Bilello, also noted the need for “fair competition and market access abroad” to strengthen the category.
The AWA said it would continue to work with Discus and policymakers to “remove trade barriers and expand access for American whiskey”.
The US’s 10% tariff on UK goods is costing the Scotch whisky industry almost £20m (US$27m) a month in lost exports, according to the Scotch Whisky Association.
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