Trump Tariffs Hit American Whiskey Exports Hard, Data Shows

President Donald Trump displays a chart with reciprocal tariffs during a ‘Liberation Day’ event in the Rose Garden at the White House on April 2, 2025 in Washington, D.C. (Photo by Samuel Corum/Sipa USA)(Sipa via AP Images)

American whiskey exports dropped sharply in 2025, with industry leaders pointing to tariffs and ongoing trade disputes as key factors behind the decline.

Exports of American whiskey fell 19% last year to $1.1 billion, according to the Distilled Spirits Council of the United States. Overall U.S. spirits exports declined 3.8% to $2.37 billion.

The downturn comes after President Donald Trump’s “Liberation Day” tariffs were rolled out, a policy shift that has increased costs for the industry and triggered retaliatory measures from key trading partners.

“The decline of U.S. spirits exports in 2025 underscores the industry’s vulnerability to uncertainty in the global trade environment and the vital importance of restoring the permanent return to zero-for-zero tariffs on spirits products,” DISCUS President and CEO Chris Swonger said in a news release.

Canada and the European Union, the two largest export markets for American spirits, saw the steepest declines.

Exports to Canada fell a staggering 70% from March through December 2025. In December 2024, Ontario Premier Doug Ford famously ordered retailers, bars and restaurants to stop selling American alcohol products. In the European Union, American whiskey exports dropped 35% to $454 million. The EU has proposed a 30% tariff on American spirits, though that measure is currently suspended until August.

The impact has shifted the makeup of U.S. spirits exports. American whiskey accounted for just 45% of total exports in 2025, the lowest share since 1996.

Industry leaders say the current trade environment has made planning more difficult.

“In this environment, which is very, very fluid, predictability and forecasting becomes even more challenging,” said Michael Bilello, president and CEO of the American Whiskey Association, speaking at a DISCUS conference in Louisville.

Tariffs have also created financial strain. According to DISCUS, the U.S. spirits sector has paid more than $100 million in tariffs since the policy changes took effect.

At the same time, the U.S. Customs and Border Protection agency is working to refund tariff collections that were ruled illegal by the U.S. Supreme Court. Reuters reported that the agency may take up to 45 days to process refund claims.

Despite the declines in Canada and the EU, exports to other global markets grew 13.2%, with gains reported in Brazil, the United Kingdom and Australia.

The EU remained the largest market for U.S. spirits at $1.2 billion, followed by the United Kingdom, Australia, Mexico and Canada.

Exports continue to play a key role for the industry as domestic sales slow and inventories remain high.

“Exports remain a critical path forward, especially amid a slowdown in domestic sales and high inventory levels,” Swonger said. “Stable, tariff-free trade and expanding market access abroad are essential to ensuring continued growth for the U.S. spirits sector.”