U.S. spirits exports declined 3.8% in 2025 to $2.37 billion, reflecting the impact of ongoing trade friction, retaliatory actions and broader economic headwinds, according to the 2025 American Spirits Exports Report released by the Distilled Spirits Council of the United States (DISCUS).

The decline was driven primarily by downturns in two key established markets. Exports to Canada dropped sharply following the removal of American-made spirits from provincial store shelves beginning in March 2025, while exports of American whiskeys to the European Union declined after some producers front-loaded shipments in late 2024 amid the threat of retaliatory tariffs.

Despite these setbacks, over the past 25 years, exports have grown fivefold, from $478 million in 2000 to $2.37 billion in 2025, driven by decades of tariff-free access to key markets and rising global demand for premium American spirits. 

“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,” said DISCUS President & CEO Chris Swonger in a statement. “When American spirits compete on a level playing field, exports grow, jobs are created and local economies thrive.”

The Canadian provinces’ removal of U.S. spirits from retail shelves had an outsized impact on total 2025 export figures. Exports to Canada fell more than 70% year-over-year from the start of the retaliatory ban in March through December. Alberta and Saskatchewan are the only two provinces that have since lifted their bans. Excluding Canada, U.S. spirits exports increased 2.5% in 2025, highlighting the resilience of global demand outside that market.

While exports of American whiskeys declined by 19% in 2025, the category remained the most exported category of U.S. spirits by far. American whiskey ($1.08 billion) was followed by liqueurs and cordials ($511 million), vodka ($282 million), rum ($90 million), gin ($48 million) and brandy ($35 million).

Much of the decline in American whiskey was driven by a sharp reduction in exports to the EU, down 35% in 2025. The decline reflects front-loading by some producers as they accelerated exports in the second half of 2024 in response to the potential reimposition of EU tariffs. Uncertainty remains for U.S. distillers with the looming threat of the EU’s proposed 30% tariff on American spirits which is currently suspended through August 2026.

Growth in markets outside Canada and the EU helped offset some of the losses in 2025. Exports to the rest of the world rose 13.2%, led by gains in Brazil, the United Kingdom, Australia and emerging markets. These increases reflect both expanding consumer demand and the growing global footprint of American distillers.

The top five markets for U.S. spirits in 2025 were the EU ($1.2 billion), UK ($153 million), Australia ($138 million), Mexico ($127 million) and Canada ($89 million). These markets account for 72% of U.S. spirits exports.

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

American distilled spirits were exported from 43 states in 2025 reflecting global demand. Top exporting states included Kentucky ($799 million), Tennessee ($793 million), Florida ($431 million), Texas ($193 million) and Indiana ($170 million).

Looking ahead, DISCUS identified a number of key priorities critical to putting exports back on a sustained growth path in 2026 and beyond. These included: restoring tariff-free trade with key partners, specifically the EU and UK; implementing new trade agreements with Argentina, Malaysia, Indonesia and Ecuador; and securing market-opening agreements with high-tariff countries like India, Brazil, Vietnam, South Africa and others.