It's a Challenging Time to Export Domestic Spirits

"The data covered in the report showed declines in spirits exports in many categories. The organization noted that exports were down by nine percent relative to the first half of 2024. In terms of exports to both Japan and the U.K., that decline was significantly greater: both had dropped by 23% compared to last year. As for why, there's a fairly simple answer: tariffs."

""Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports," said the organization's president and CEO Chris Swonger in a statement. "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." Several categories of spirits also showed significant declines in exports year over year."

U.S. spirits exports declined nine percent in the first half of 2025 versus the first half of 2024. Exports to Japan and the U.K. fell 23% each year over year. Whiskey exports dropped 13%, while brandy and vodka fell 12% and 14%, respectively. Tariffs and persistent trade tensions prompted international consumers to favor domestically produced spirits or imports from other countries, reducing demand for American brands. Exports to Canada began falling sharply in March 2025 as Canadian buyers shifted toward domestic spirits. The interconnected nature of the sector amplifies the broader industry impact of tariffs.

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