Exports of U.S. distilled spirits fell markedly in the second quarter of 2025 compared to last year, a lobbying group said Monday in a report that sounded the alarm about trade tensions under President Trump.
The Distilled Spirits Council of the United States said 2024 had been a great year for its businesses, but exports fell 9%, year over year, for the quarter.
“Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports,” DISCUS President and CEO Chris Swonger said. “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.”
The group reported steep drops in the U.K., Japan and the European Union. However, it said the biggest driver was Canada, where residents are effectively boycotting American spirits because of a trade spat between the North American countries.
U.S. spirits exports to Canada fell 85% in the second quarter, falling below $10 million, the council said.
Mr. Trump slapped steep tariffs on Canada earlier this year, saying it wasn’t doing enough to stop fentanyl trafficking over the border, though many goods were exempted under the U.S.-Mexico-Canada Agreement negotiated by the first Trump administration.
Mr. Trump recently imposed an effective tariff rate of 35% on Canada, though both sides are trying to negotiate a deal. The damage might be done in the alcohol sector, where Canada launched a “Buy Canadian” campaign and provincial stores decided to ban U.S. distilled spirits.
A similar, if less formal, trend is happening across the Atlantic. Mr. Trump threatened the EU with steep tariffs before landing on a 15% rate as part of a deal with the bloc.
Europeans have formed groups on social media to boycott American products. One such group in Sweden, known as “Bojkotta varor från USA,” has more than 87,000 members.
Earlier this year, the European Central Bank’s Consumer Expectations Survey found European consumers “are very willing to actively move away from U.S. products and services” because of Mr. Trump’s tariffs.
The distillers’ council said exports to the EU — the U.S. industry’s biggest market — fell 12% to $290.3 million. Exports to the U.K. fell 29% to $26.9 million, and those to Japan dropped 23% to $21.4 million, the report said.
Tariffs are a tax on foreign goods when they enter U.S. markets. Mr. Trump is using them aggressively in his second term, saying they give him leverage over foreign nations, reap billions in revenue and protect domestic industries.
He recently finalized deals with the U.K. and Japan, for instance, that should increase those nations’ purchases of American farm and aviation products in exchange for a lower tariff rate on their exports to the U.S.
Mr. Trump is scheduled to host Canadian Prime Minister Mark Carney for a working meeting on Tuesday, and trade will likely be a main topic.
“President Trump’s trade agenda has created unprecedented market access for American products to economies that in total are worth over $32 trillion, with over 1.2 billion people,” White House spokesman Kush Desai said. “As these trade deals and the administration’s pro-growth policies of deregulation and working-class tax cuts take effect, it’s going to be bottoms up for American distillers, brewers, and winemakers.”
Yet tariffs can result in blowback, as seen in Canada. Critics of Mr. Trump’s tariffs point to the potential for higher costs on consumers, but declining exports for U.S. industries could result in other shocks, including closures or layoffs.
Domestic demand for alcoholic drinks had been slowing, due to changing habits, so the industry is worried about a slowdown in global markets.
The council wants Mr. Trump to negotiate deals with the EU and other partners that result in zero tariffs on alcohol from either side.
“For decades, the spirits sector was the model for ‘fair and reciprocal’ trade,” Mr. Swonger said. “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.”
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.