Liquor exports from the United States to Canada posted a sharp 85% decline in the second quarter, the result of controversial changes in trade policy made by President Donald Trump.

Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, warned that tariffs and trade uncertainty are jeopardizing the hundreds of distilleries operating across the U.S.

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“Twenty-five years ago, there were only 60 distilleries in the United States,” Swonger said. “Today, there’s over 3,100. Many of them are mom-and-pop craft distilleries sprinkled all around the country, and a big part of their growth trajectory is to be able to export. So I think there is some danger of this great American success story that has happened over the last 25 years to be in jeopardy.”

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Swonger said his group is “working feverishly” with the Trump administration to get the U.S. back to “permanent, fair, and reciprocal zero-to-zero tariff trade” with the country’s key trading partners.

A new report from DISCUS this week found that worldwide exports of U.S. spirits fell 9% year-over-year in the second quarter.

However, the shift away from U.S. exports is even more pronounced in Canada, despite its removal of its retaliatory tariff on U.S. spirits in September. This is because the majority of Canadian provinces have continued to ban stores from selling U.S. liquor products, such as bourbon.

Exports to Canada totaled more than $63 million in the second quarter of last year, but only $9.6 million in the same period this year.

The industry has also faced declines in the European Union, which is the biggest importer of U.S. liquor exports. The industry has seen a 12% decrease in exports to the EU, representing a $40 million drop from the second quarter of 2024.

Swonger said there is mounting concern that international consumers are increasingly opting to purchase spirits produced in their own countries or in countries other than the U.S.

And the tense situation with tariffs and global trade is having knock-on effects for distilleries. Swonger said, anecdotally, his group is hearing that fewer Canadian tourists are traveling south to visit and tour U.S. distilleries.

While most Canadian provinces have stopped selling U.S. liquor in stores, Swonger also touched on concerns that, even if U.S. products were available, Canadian customers might boycott.

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Swonger said he has done appearances in Canadian media in an effort to highlight just how intertwined the U.S. and Canadian spirits industries are, and has received some “hate mail” as a result.

“Hopefully, we’ll be afforded the opportunity to get back on store shelves with all the liquor stores in Canada,” Swonger said. “But you know, I think the emotions in Canada seem awfully high. They’re a very proud country, and we’re seeing the impact of that.”