Exports to key markets, including Japan, the European Union, the United Kingdom, and Canada, declined by 9 percent, compared to the same period in 2024.
Canada, it should be noted, is the only trading partner to retaliate against U.S. spirits, with most Canadian provinces banning the sale of U.S. spirits. This has resulted in exports to Canada plunging by 85 percent, plummeting below $10 million in 2025's second quarter.
As for Japan and the United Kingdom, exports to those countries declined by 23 percent and exports to the European Union sank 12 percent.
This all comes from 2024 sales, which broke records and saw more than $2.4 billion exported abroad from 43 states.
In Kentucky, distilled spirits like bourbon and rye whiskey are critical to the economy of the Bluegrass State.
But it's not only bourbon and rye whiskey. Other spirits are feeling the pinch. Brandy exports are down 12 percent; American whiskey down 13 percent; vodka down 14 percent; cordials down 15 percent, and rum declined six percent.
For American whiskey producers, including those producing bourbon and rye in Kentucky and other states, the 13 percent drop translates into a loss of $40.5 million.
North of the border, Canadian consumers are embracing the government-led "Buy Canadian" movement, where Canadian products are purchased over American options, according to an Ipsos poll conducted in September.
An Ipsos poll for Global News released last month found support for the “Buy Canadian” movement remains strong: 56 percent of respondents said they recently bought Canadian products or investments due to the trade war, while nearly 60 percent said they went out of their way to avoid American options.
Domestic distilleries in Canada saw a 3.6 percent increase in sales of Canadian spirits, as of April 2025, while U.S. spirits declined by 68 percent.