"Exports of U.S. spirits to Canada plunged by 85% in the second quarter from a year ago, marking the steepest declines among four key markets, according to data released Monday by the Distilled Spirits Council of the United States (DSCUS). Overall, exports of American spirits fell 9% in the second quarter as U.S. spirits makers pay the price of persistent trade tensions."
"After a record year for U.S. spirits exports in 2024, this steep slump in exports in the second quarter is "very troubling" for U.S. distillers," Chris Swonger, president and CEO of the spirits council, said 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.""
"This data shows the extent of the effect of Canada's retaliatory tariffs on U.S. spirits, along with the decision by liquor stores in many provinces to yank American brands from their shelves altogether. While Canada did remove its retaliatory tariffs on U.S. spirits last month, drinkers there may have found other options that are more appealing to their palettes. In April, for example, sales of U.S. spirits plummeted 68%, though sales of Canadian and other imported spirits rose about 3.6% each, according to DSCUS."
U.S. alcohol consumption is declining while exports of American spirits have dropped, intensifying financial stress across the industry and prompting distillery closures and job losses. Exports fell 9% in the second quarter, with shipments to Canada plunging 85% year-over-year and double-digit declines across the European Union, United Kingdom, and Japan, which together represent 70% of export value. Retaliatory tariffs and retailer delistings in Canada reduced U.S. market share even after tariffs were removed. In April, U.S. spirit sales tumbled 68% in Canada while Canadian and other imported spirits rose about 3.6%.
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