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According to a new report released by the Distilled Spirits Council of the United States (DISCUS), US liquor exports tanked in the second quarter of 2025, with a notable impact being reported in Canada.

Getting into it: According to the data, total US spirit exports declined by 9% in the second quarter of 2025, falling from $651 million in Q2 2024 to $593.6 million. The steepest drop was seen in exports to Canada, which plummeted by 85%, falling from $63.1 million to just $9.6 million (the first time the figure has dipped below $10 million). Analysts attribute the collapse in Canadian sales to lingering effects of tariffs Canada previously imposed in retaliation for US trade policy, even though the tariffs were lifted on September 1. Despite their removal, most Canadian provinces have not resumed selling American spirits in government-operated stores.

In the EU, which accounts for roughly half of all US spirits exports, shipments declined by 12%, from $330.7 million in Q2 2024 to $290.3 million in Q2 2025. Exports to the United Kingdom were hit even harder, dropping 29%, from $37.7 million to $26.9 million. In Japan, sales fell 23%, down to $21.4 million from $27.7 million the previous year. Together, Canada, the EU, the UK, and Japan represent 70% of total US spirits exports by value, making the widespread downturn particularly alarming for American distillers.

The report also detailed a sharp decline across key spirit categories. American whiskey, the industry’s flagship product, saw exports fall by 13%. Vodka declined by 14%, brandy by 12%, rum by 6%, and cordials suffered the steepest category drop at 15%. These declines are especially concerning given that 2024 was a record year for US spirits exports, which reached $2.4 billion, driven largely by strong global demand for American whiskey.

DISCUS President and CEO Chris Swonger called the findings “very troubling” and warned that persistent trade tensions are taking a heavy toll on US distillers. “There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the US, signaling a shift away from our great American spirits brands,” Swonger said. The Council emphasized the need for restoring zero-for-zero tariffs with key trading partners, particularly with Canada.