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Bourbon, spirits industry suffers ‘significant downturn’ after record year for exports
A new report from the Distilled Spirits Council of the U.S. reveals a “significant downturn” in exports of distilled spirits, including American whiskey products like bourbon, due to “ongoing trade tensions.”
Globally, U.S. spirits exports decreased by 9% in the second quarter when compared to the same period of 2024 — reflecting the loss of $57.4 million for U.S. distillers.
And in some key export markets for American-made spirits, including the European Union, Canada, the United Kingdom and Japan, the decline was more palpable. The decrease in exports of U.S.-made spirits products comes off a record breaking 2024 that saw more than $2.4 billion exported abroad from 43 states.
Prior to the slew of tariffs imposed on U.S. trading partners by President Donald Trump’s administration, the EU, Canada, the UK, and Japan accounted for 70% of U.S. spirits exports, according to the Oct. 6 DISCUS report.
In the second quarter of 2025, exports to the EU fell 12%, the UK and Japan both saw a more than 23% decrease, and Canada saw the steepest plunge with an 85% decrease.
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“In a state like Kentucky, we’ve known from the start that Trump’s sloppy tariff policies would hit us hardest,” U.S. Rep. Morgan McGarvey said in an email statement. “Trump should come tell Kentucky farmers who grow the corn for bourbon, and the workers who bottle it, and the truck drivers who get it where it needs to go why his ego-driven trade war is worth sabotaging their job security.”
The most drastic trade consequences for U.S. made spirits comes from Canada, which notably blocked the sale of U.S. spirits, including Kentucky bourbon, in many of its provinces. While the country did recently remove retaliatory tariffs on the U.S. spirits, exports to the northern neighbor for the second quarter fell below $10 million.
Meanwhile, as U.S. spirits sales faded in Canada, the Liquor Control Board of Ontario reported an increase of 23% in year-over-year sales between Feb. 9 and Sept. 6 of Ontario-made products, including a 4.5% increase in Ontario-made spirits, such as whiskey.
Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, said in a release the “Buy Canadian” movement is giving Canadian producers “an opportunity to get our products into the hands of new consumers and our soaring sales show that they are falling in love with us.”
American whiskey, which includes bourbon, saw global exports decrease by 13%, reflecting a loss of $40.5 million in the second quarter, according to the DISCUS report.
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“This trend presents a growing challenge for the U.S. spirits industry. International consumers appear increasingly inclined to substitute U.S. spirits with domestic alternatives or imports from other countries,” the report stated.
And American whiskey stands to suffer more than other domestic-made spirits, DISCUS found. The American whiskey category is facing “stagnating” sales in the U.S. while maintaing a record high inventory that hit 1.5 billion proof gallons at the end of 2024. In 2024, Kentucky alone exported more than $750 million in spirits abroad.
“If trade-related disruptions continue to erode export volumes, U.S. distillers could face mounting pressure and financial strain,” the report stated.
Contact business reporter Olivia Evans at oevans@courier-journal.com or on X, formerly known as Twitter, at @oliviamevans_.
This article originally appeared on Louisville Courier Journal: U.S. spirits, including Kentucky bourbon, exports tank amid tariffs