American liquor exports to Canada decrease by 85% compared to the previous year.

A recent report from the Distilled Spirits Council of the United States (DISCUS) has revealed a significant decline in the export of American spirits to Canada, with figures dropping by an alarming 85%. This decline marks a stark contrast to 2024, which was heralded as a successful year for U.S. distilled spirit exports. The report indicates a broader downward trend in exports, with an overall decrease of 9% year over year in the second quarter of 2025.

According to the report, exports of U.S. spirits to Canada fell beneath the million threshold during the second quarter of this year, marking a troubling downturn for an industry that has traditionally relied on its northern neighbor as a key market. Chris Swonger, President and CEO of DISCUS, described these findings as particularly worrisome for American distillers, citing escalating tensions between the United States and its trade partners as a core reason for the decline. He noted that there seems to be a growing preference among international consumers for domestically produced spirits or imports from nations outside the United States, suggesting a shift away from American brands.

In a bid to improve trade relations, Canada recently lifted its tariffs on U.S. spirits as of September 1. However, the impact of this policy change has been muted, as many Canadian provinces continued to limit or halt the sale of American spirits. Tom Bard, a craft distiller from Kentucky, lamented the ongoing barriers, underscoring that U.S. brands are still not adequately represented on shelves in Canada and suggesting that the situation may take considerable time to rectify.

The report noted that the decline in exports is not isolated to Canada. Exports to the United Kingdom dropped by 29%, while Japan experienced a decrease of 23% during the same timeframe. However, there have been positive results in certain markets, with notable increases in exports to Mexico, Brazil, Singapore, and South Korea.

As the landscape of international spirits trade continues to evolve, the impact of geopolitical factors and trade negotiations will undoubtedly play a pivotal role in shaping the future of U.S. distilled spirits abroad. The industry remains vigilant, hoping for a resurgence in exports as trade barriers are addressed and consumer preferences are reassessed.

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