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U.S. Spirits Exports Fall 9% as Canada Sales Plunge and Provinces Keep U.S. Brands Off Shelves

Provincial bans that persisted after Canada lifted retaliatory tariffs are choking access to a crucial market, prompting distillers to seek a tariff‑free path back.

Overview

  • U.S. distilled spirits exports fell 9% year over year in Q2 2025 to $593.6 million after a record 2024, the Distilled Spirits Council reported Monday.
  • Shipments to Canada dropped about 85% to $9.6 million as most provinces continue to delist American spirits despite Ottawa removing retaliatory tariffs in September; Alberta and Saskatchewan have eased moratoriums.
  • Exports also slid in other key markets: European Union down 12% to $290.3 million, United Kingdom down 29% to $26.9 million, and Japan down 23% to $21.4 million.
  • Distillers warn that slowing U.S. consumption and swollen inventories heighten risks of production cuts and job losses, with small craft producers reporting canceled expansion plans and unfilled positions.
  • Industry leaders are urging President Trump to restore zero‑for‑zero tariffs; the White House defended its trade agenda, and Trump met Canadian Prime Minister Mark Carney on Tuesday with trade on the agenda.