U.S. distilled spirits exports plummet

1:08 a.m. Oct. 7, 2025

DUANE CROSS
MCO Publisher•Editor

U.S. distilled spirits exports experienced a significant decline in the second quarter of 2025, falling by 9% compared to the same period in 2024, a drop attributed mainly to ongoing trade tensions. The decline was particularly steep in shipments to the industry's most vital international destinations, including the European Union (EU) and the United Kingdom (UK).

Exports to the European Union (EU), a crucial market accounting for 50% of total U.S. spirits exports in 2024, were down 12% in the second quarter of 2025. The EU, along with Canada, the UK, and Japan, accounted for a combined 70% of U.S. spirits exports in 2024. The significant drop in exports to this major market presents a growing challenge for U.S. distillers.

Similarly, exports to the United Kingdom (UK) plummeted by more than 23% in the second quarter of 2025.

Canada Plunges Amid Sales Ban

The steepest decline was seen in exports to Canada, which plunged by 85%. Exports to Canada dropped below $10 million in the second quarter of 2025. While Canada is the only trading partner to have recently had retaliatory tariffs on U.S. spirits removed, a ban on U.S. spirit sales remains in place in most Provinces.

The impact of this measure is evident in sales data. In April 2025, sales of U.S. spirits in Canada declined by 68%, while sales of Canadian and other imported spirits rose by approximately 3.6% each.

• Mid-Year Exports Report

Broader Industry Challenges

The overall downturn reflects international consumers' growing preference for replacing U.S. spirits with domestic alternatives or imports from other countries. This shift may indicate a growing sentiment that U.S.-imposed tariffs are unfair, prompting consumers to support their domestic industries or seek alternatives from non-U.S. sources.

Exports of several spirits categories saw double-digit declines:

• Cordials (-15%)
• Vodka (-14%)
• American Whiskey (-13%)
• Brandy (-12%)

This trend is especially critical for U.S. whiskey producers, who are already grappling with stagnating domestic sales and record-high inventory levels. Since 2012, U.S. whiskey inventories have tripled, reaching nearly 1.5 billion proof gallons by the end of 2024. Exports represent the most viable path to reducing this excess inventory and ensuring the sustainability of U.S. whiskey makers.

Overall distilled spirits supplier sales in the U.S. have been stagnant since 2022, declining from $37.7 billion in 2023 to $37.2 billion in 2024. If trade-related disruptions persist, U.S. distillers may face increasing pressure and financial strain.