(The Hill) – United States liquor exports to Canada declined by 85 percent in the second quarter of 2025, according to a new report, which cited the “adverse impact” of ongoing trade tensions.

The midyear report, released Monday by the Distilled Spirits Council of the United States (DISCUS), shows that exports to Canada dropped to $9.6 million in the second quarter of 2025, down from $63.1 million in the second quarter of 2024.

President Trump announced sweeping tariffs on U.S. trading partners earlier this year, including a 35 percent tariff on Canada. Goods covered by the U.S.-Mexico-Canada trade agreement, which Trump struck during his first term, are exempt from the tariffs.

Canada responded with counter tariffs but lifted most of them on Sept. 1.

Still, according to the report, “the majority of Provinces continue to ban American spirits from their shelves. Canada remains the only key trading partner to retaliate against U.S. spirits.”

Overall, U.S. exports of distilled spirits declined by 9 percent year over year in the second quarter of 2025: from $651 million in the second quarter of 2024 to $593.6 million in the second quarter of 2025.

In other international markets, U.S. exports of spirits also took a hit.

Exports to the European Union, the U.S. industry’s largest market, decreased by 12 percent, falling from $330.7 million in the second quarter of 2024 to $290.3 million in the second quarter of 2025.

U.S. exports to the United Kingdom declined by 29 percent, from $37.7 million in the second quarter of last year to $26.9 million in the second quarter of this year. And exports to Japan dropped 23 percent, from $27.7 million last year to $21.4 million this year.

DISCUS President and CEO Chris Swonger warned that “persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports.”

“There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands,” Swonger continued.

Swonger called for a return to zero-for-zero tariffs, asking the president directly for his help.

“With domestic demand slowing, it is critically important that U.S. distillers have the certainty of zero-for-zero tariffs with our key markets, including the EU and UK. The spirits sector is highly interconnected and, as a result, tariffs on imported spirits have wide-reaching consequences on the industry as a whole,” Swonger said. “For decades, the spirits sector was the model for ‘fair and reciprocal’ trade.”

“We urge the President to help facilitate a lasting return to tariff-free trade with our longstanding trading partners to ensure the continued growth and vitality of this great industry.”

The White House responded to the report, touting Trump’s trade agenda and overall economic policies as beneficial to the industry.

“President Trump’s trade agenda has created unprecedented market access for American products to economies that in total are worth over $32 trillion with over 1.2 billion people,” White House spokesperson Kush Desai said in a statement.

“As these trade deals and the Administration’s pro-growth policies of deregulation and working-class tax cuts take effect, it’s going to be bottoms up for American distillers, brewers, and winemakers,” Desai continued.