Challenges and Opportunities: American Distillers Navigate Global Trade Tensions
American distillers have faced a significant decline in exports to Canada and other key international markets due to global trade tensions. Despite some easing in trade relations, American spirits are still banned from shelves in most Canadian provinces. The Distilled Spirits Council of the United States reported a 9% decrease in overall American spirits exports in the second quarter of 2025, with sharp declines in the European Union, United Kingdom, and Japan.
The trade conflicts have raised concerns that international consumers may be turning away from American spirits in favor of domestically produced or imported spirits from other countries. The Distilled Spirits Council is advocating for free-flowing trade with zero-for-zero tariffs to provide American distillers with the certainty they need in global markets. The sector is facing challenges in the U.S. market, where a sales slowdown coincides with excess whiskey stockpiles.
The most significant drop in exports occurred in Canada, where U.S. spirits exports plummeted by 85% in the second quarter of 2025. Exports to the European Union, United Kingdom, and Japan also saw notable declines. While some countries like Mexico, Australia, Brazil, Singapore, and South Korea experienced increased sales of American spirits, the overall trend is concerning for the industry.
Large and small distillers alike are feeling the impact of trade conflicts. Brown-Forman Corp. reported a drop in net sales, with significant declines in key markets like Germany, the United Kingdom, and Canada. Small distillers, like Tom Bard of The Bard Distillery in Kentucky, have been particularly affected by the trade tensions. Bard had ambitious plans to expand his business in Canada, but the trade conflict disrupted those efforts, leading to lost revenue and job vacancies.
Recovering lost market share will be a challenging process for American distillers, especially small producers like Bard. Reestablishing a presence in international markets will require time and effort, with uncertainties lingering due to ongoing trade disputes. The industry is hopeful for a resolution that will allow American spirits to regain their foothold in key markets and continue to thrive globally.