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U.S. exports to Canadian liquor fell 85% in the second quarter of 2025, according to a new report, which cites the “adverse effects” of ongoing trade tensions.
The annual report (discus) released by the U.S. Distillation Spirit Council on Monday showed that exports to Canada fell to $9.6 million in the second quarter of 2025, down from $63.1 million in the second quarter of 2024.
President Trump announced tariffs on U.S. trading partners earlier this year, including a 35% tariff on Canada. The goods covered by Trump hit in his first term are exempt from tariffs.
Canada responded by counting tariffs, but canceled most of them on September 1.
Nevertheless, according to the report, “most provinces continue to ban the American spirit from the shelves. Canada remains the only key trading partner in retaliation against our spirit.”
Overall, U.S. distilled spirit exports in the second quarter of the second quarter fell 9% year-on-year: from $651 million in the second quarter of 2024 to $593.6 million in the second quarter of 2025.
In other international markets, American spiritual exports have also been hit.
Exports from the EU, the largest market in the United States, fell 12%, from $330.7 million in the second quarter of 2024 to $290.3 million in 2025.
U.S. exports to the UK fell 29%, up from $37.7 million last year to $26.9 million in the second quarter of this year. Japan’s exports fell from $27.7 million last year to $21.4 million this year.
Discus president and CEO Chris Swonger warned: “The ongoing trade tensions have had a direct and adverse impact on American spiritual exports.”
Swonger continued: “There is increasing concern that our international consumers are increasingly choosing to import from countries outside the United States for domestically generated spirits or imports, which is a sign of a shift from our great American spirits brand.”
Swonger called for a return to zero correct tariffs and seek help from the president directly.
“As domestic demand slows, the certainty of the U.S. distiller is crucial to zero-value tariffs in our major markets, including the EU and the UK. The spiritual industries are highly interconnected, so importing tariffs have a wide impact on the entire industry,” Swonger said. “For decades, the spirits industry has been a model of ‘fair and mutual’ trade.”
“We urge the President to help promote lasting and unrelated trade with long-term trading partners to ensure the sustained growth and vitality of this great industry.”
The White House responded to the report, touting Trump’s trade agenda and overall economic policies to benefit the industry.
“President Trump’s trade agenda provides unprecedented market access for U.S. products, with economies worth more than $3.2 billion and more than $1.2 billion in population,” White House spokesman Kush Desai said in a statement.
“With these trade deals and government promotion policies for deregulation and tax cuts going into effect, this will be the bottom of the bottom for American brewers, winemakers and winemakers,” Desai continued.