Liquor exports fell last year under retaliation to Trump tariffs: report

WASHINGTON – U.S. liquor exports fell more than $90 million last year, which a trade group blamed on trade friction with Canada and Europe after President Donald Trump imposed emergency tariffs that the Supreme Court has since overturned.

Exports to Canada dropped sharply after provincial stores removed American spirits from their shelves in March 2025, according to a report from the Distilled Spirits Council of the United States. And European Union imports of American whiskeys declined after producers sent extra shipments in late 2024 because of the threat of retaliatory tariffs.

Council CEO Chris Swonger said the 3.8% decline in exports underscored the industry’s vulnerability to uncertain trade policy and reinforced the importance of having no tariffs on spirits.

“When American spirits compete on a level playing field, exports grow, jobs are created and local economies thrive,” he said in a statement.

The decline came after exports had grown five-fold in the past 25 years, from $478 million in 2020 to $2.37 billion last year, according to the group.

Trump imposed emergency tariffs worldwide April 2 to pressure other countries to reach new trade deals, to reduce trade deficits with other countries and to raise money for the federal treasury.

But the Supreme Court ruled in February that he didn’t have the authority to single-handled impose tariffs under the 1977 International Emergency Economic Powers Act.

Trump imposed 10% temporary tariffs under a different statute after the court’s decision. His administration is pursuing longer-standing duties through investigations for national security and trade deficits.

Canada’s imports fell more than 70% as provinces removed American brands from their shelves from March through December. Alberta and Saskatchewan are the only two provinces that have since lifted their bans.

Without the Canadian decline, exports of U.S. spirits would have increased 2.5% last year, the council said.

The decline in American whiskey exports was driven by a sharp reduction in exports to the European Union, which were down 35% last year. Some producers accelerated exports in 2024 as the union threatened 30% retaliatory tariffs on American spirits, which have been suspended through August.

In contrast to the declines in sales to Canada and Europe, exports grew to Brazil, the United Kingdom and Australia, the council said.

“Stable, tariff-free trade and expanding market access abroad are essential to ensuring continued growth for the U.S. spirits sector,” Swonger said.