U.S. Spirit Exports Fall 9% as Trade War and Canadian Boycotts Hit Liquor Sales

Exports of U.S. spirits dropped 9% in the second quarter as trade tensions and Canadian market restrictions weighed heavily on sales, according to new data from the Distilled Spirits Council of the U.S. The decline was driven by steep losses in Canada, where shipments fell 85% to under $10 million despite Ottawa lifting its 25% retaliatory tariff last month.

• Canadian provincial liquor boards have largely kept U.S. spirits off government-run store shelves, benefiting domestic and non-U.S. brands.
• Brown-Forman Corp. ($BF.B), maker of Jack Daniel’s, reported a nearly 60% sales drop in Canada tied to the dispute.
• Exports to the European Union — the largest market for U.S. spirits — fell 12% to $290.3 million, while shipments to the U.K. and Japan each declined by more than 20%.
• The Distilled Spirits Council said trade frictions are causing “immediate and adverse” effects on exports and urged the administration to restore tariff-free trade with key partners.
• Bloomberg Intelligence projects overall U.S. distilled spirits sales could decline 1%–2% annually through 2029 due to soft demand and changing consumer habits.

Relevant Companies

• Brown-Forman Corp. ($BF.B) – Significant exposure to Canadian and European markets makes the company vulnerable to trade-related sales declines.
• Diageo plc ($DEO) – Competes globally in spirits and could benefit from reduced U.S. market share abroad.

Editor’s Note: This is a developing story. This article may be updated as more details become available.