According to a recent report, U.S. liquor exports to Canada plummeted by 85% in the second quarter of 2025, largely due to the ongoing trade tensions.
The report from the U.S. Council on Distilled Spirits (Discus), released on Monday, shows that exports to Canada dropped to $9.6 million, down from $63.1 million in the same quarter last year.
Earlier this year, President Trump implemented significant fees for U.S. trading partners, which included a hefty 35% tariff on imports from Canada. However, items under the U.S.-Canada trade agreement negotiated during his first term are exempt from these tariffs.
In retaliation, Canada provided a counterargument but lifted many tariffs on September 1st.
Even so, the report indicates that many areas in Canada still prohibit American spirits. It highlights that Canada remains the only major trading partner against U.S. liquor.
Overall, U.S. distilled spirit exports experienced a year-on-year decline of 9% in the second quarter of 2025, falling from $651 million in 2024 to $593.6 million this year.
Other international markets also showed a decline in U.S. spirit exports.
Exports to the European Union, the largest market for the U.S. industry, dropped by 12%, decreasing from $330 million last year to $290.3 million this year. Similarly, exports to the U.K. fell by 29%, down from $37.7 million to $26.9 million, while exports to Japan decreased by 23%, from $27.7 million to $21.4 million.
Chris Swanger, President and CEO of Discus, cautioned that persistent trade tensions have an immediate detrimental effect on U.S. exports.
He expressed concern that international consumers are increasingly opting for domestically produced spirits from other countries, which might indicate a shift away from American brands. Swanger reiterated the need for the return of zero tariffs and sought the President’s assistance.
It’s crucial for U.S. distillers to have reliable tariff conditions, especially in key markets like the EU and the U.K., as tariffs on imported spirits significantly affect the industry, he added. “For decades, the spirits sector has exemplified fair trade practices,” he noted.
Swanger urged the President to foster long-lasting benefits through tariff-free trade with established partners to help sustain the industry’s growth and vitality.
The White House responded by promoting Trump’s trade strategies and economic policies as advantageous for the sector.
“President Trump’s trade agenda opens up unprecedented market access for U.S. products in an economy worth over $12 trillion, reaching more than 1.2 billion people,” stated White House spokesman Kush Desai. He suggested that the administration’s focus on deregulation and tax cuts for the working class would bolster American distilleries, brewers, and winemakers.
