By Emma Rumney -Exports of U.S. spirits fell 9% in the second quarter, according to a report by the Distilled Spirits Council of the United States published on Monday, which warned that trade tensions
US spirits exports tumble as drinkers shun American brands, industry warns
Impact of Trade Tensions on US Spirits Exports
By Emma Rumney
Market Performance Overview
-Exports of U.S. spirits fell 9% in the second quarter, according to a report by the Distilled Spirits Council of the United States published on Monday, which warned that trade tensions were hitting demand in key markets.
Consumer Preferences Shift
The decline marked a sharp reversal from 2024's strong export performance, with steep drops across major markets including the European Union, Canada, Britain and Japan, which together represent 70% of total exports by value, DISCUS said. The trade association represents top spirits makers, including Jameson Irish whiskey maker Pernod Ricard and Brown-Forman, which produces Jack Daniel's.
Industry Responses and Concerns
Canada saw the most dramatic fall, with U.S. spirits exports plummeting 85% to below $10 million in the second quarter. The majority of Canadian provinces continue to ban American spirits from their shelves in response to U.S. tariffs targeting Canada, although the country removed retaliatory tariffs in September.
Exports to the EU, the industry's largest market, dropped 12% to $290.3 million, while shipments to Britain fell 29% to $26.9 million and those to Japan decreased 23% to $21.4 million, with DISCUS also citing trade tensions.
"There's a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands," said DISCUS President Chris Swonger.
Other consumer goods industries have warned about rising anti-American sentiment following the sweeping tariff regime and other policies pursued by U.S. President Donald Trump.
Denim maker Levi Strauss warned in August that it faced risks of "rising anti-Americanism" as a consequence and that some consumers could shift away from U.S. products. McDonald's CEO Chris Kempczinski told investors in May that the company had also observed an uptick in such sentiment, particularly in Northern Europe and Canada.
The export slump comes as American whiskey producers contend with slowing domestic sales and record-high inventory levels, DISCUS said.
Swonger said that the spirits sector is deeply interconnected, meaning U.S. tariffs hit the industry as a whole. He urged the Trump administration to work toward restoring zero-for-zero tariffs with trading partners.
(Reporting by Emma Rumney, Editing by Louise Heavens)
