U.S. spirits shipments abroad declined 9% in the second quarter of this year as trade tensions between America and key global partners ramped up. The E.U. (-12% to $290 million), Canada (-85% to below $10m), U.K. (-29% to $27m), and Japan (-23% to $21m) account for 70% of total U.S. spirits exports, and they all saw declines in the second quarter.

By category, American whiskey was the hardest hit, decreasing 13%, with falling shipments also recorded for Vodka (-14%), Rum (-6%), Brandy (-12%), and Cordials (-15%). The decline in whiskey exports comes as the category is dealing with oversupply, with inventories tripling from 2012-2024 to 1. 5 billion proof gallons, the Distilled Spirits Council of the U.S. (DISCUS) noted, while domestic and export sales totaled 58 million and 45 million proof gallons, respectively.

“With domestic demand slowing, it is critically important that U.S. distillers have the certainty of zero-for-zero tariffs with our key markets, including the E.U. and U.K.,” said DISCUS president and CEO Chris Swonger. “The spirits sector is highly interconnected and, as a result, tariffs on imported spirits have wide-reaching consequences on the industry as a whole. For decades, the spirits sector was the model for ‘fair and reciprocal’ trade. We urge the President to help facilitate a lasting return to tariff-free trade with our longstanding trading partners to ensure the continued growth and vitality of this great industry.”—Daniel Marsteller