American distillers have gotten a costly cold shoulder from Canada, where their exports plunged 85% earlier this year — topping broad declines in key international markets amid global trade tensions, a spirits industry group said Monday.
Even a thaw in trade relations may not shake this hangover right away.
“Even though things have eased up, we still are not back on the shelf in Canada,” said Kentucky craft distiller Tom Bard. “Probably won’t be for a good long while.”
The majority of Canadian provinces continue to ban American spirits from shelves, though Canada removed its retaliatory tariff on the products weeks ago, the Distilled Spirits Council of the United States said. There’s another nagging concern — that consumer reaction to the trade conflicts could curb the international thirst for American spirits in key markets.
Overall exports of American spirits fell 9% in the second quarter of 2025 compared to a year ago, the council said in its new report. Sharp declines occurred in other crucial markets — the European Union, United Kingdom and Japan, it said. That comes on the heels of a banner year for U.S. spirits exports in 2024, the council said. Total first-quarter exports in 2025 edged up by 1% from a year ago.
