“Over the past two decades, international markets have become vital to the spirits industry.” That’s what the Distilled Spirits Council of the United States, a spirits industry group, stated in its latest report. That report explored the state of spirits exports from the U.S. in the first half of 2025 — and, as you might expect, the news it contained wasn’t exactly grounds for celebration.
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. In the first half of 2025, whiskey exports were down by 13% compared to 2024, while brandy and vodka were down by 12% and 14%, respectively.
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Whey is one of the hottest ingredients in distilling right nowThis report also reveals another facet of the way the global spirits market is changing. As The Spirits Business reported earlier in October, tariffs have caused many Canadians to drink domestic spirits rather than U.S. exports. The Distilled Spirits Council’s report shows what this looks like from the U.S. side of things, with significant drops in exported spirits to Canada beginning in March of this year.
“The spirits sector is highly interconnected and, as a result, tariffs on imported spirits have wide-reaching consequences on the industry as a whole,” Swonger said. The data reflected in the report shows a clear change in direction, but it remains to be seen if this will affect the nation’s tariff policies.
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