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flag U.S. spirits exports to Canada dropped 85% in Q2 2025 due to ongoing provincial bans, despite tariff removal.

flag U.S. spirits exports to Canada plunged 85% in Q2 2025, falling below $10 million, despite Canada lifting retaliatory tariffs, as provincial bans continue to block American products from shelves. flag Overall U.S. spirits exports declined 9% year-over-year, with significant drops in the UK (29%), Japan (23%), and the EU (12%). flag The downturn follows trade tensions tied to U.S. tariff policies, leading to reduced global demand and a shift toward domestic and non-U.S. spirits. flag Distillers, especially smaller producers, remain hesitant to re-enter international markets without guaranteed zero-for-zero tariffs, fearing future retaliation. flag Domestic overproduction and slowing sales have increased reliance on overseas markets, now under threat.

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