A Trade Group Asks Washington to Clear the Path for U.S. Distillers
The Distilled Spirits Council of the United States, known as DISCUS, has sent Washington a clear message: American distillers want to sell more overseas, and tariffs are standing in the way. The group filed its submission to the United States Trade Representative (USTR) for the 2027 National Trade Estimate Report. In it, DISCUS called for a permanent return to zero-for-zero tariffs with major trading partners, quick action on trade deals, and the removal of non-tariff barriers that hold exports back.
The timing matters. After a record year in 2024, American spirits exports slipped in 2025, and the industry says the trend shows what trade disputes can do to a business that depends on customers around the world.
This article is purely informational and looks at the numbers, the key markets and what the industry is asking for.
The Numbers Behind the Slide
Total U.S. spirits exports fell nearly 4% in 2025, landing at $2.37 billion. That came right after export levels hit an all-time high in 2024, when the total reached about $2.46 billion.
The dip looks smaller when set against the long run. U.S. spirits exports have grown fivefold over the past 25 years, climbing from $478 million in 2000 to $2.37 billion in 2025.
A Quarter Century of Growth
The path from 2000 to today was not a straight line, but the overall direction was up. Here is how it went:
- In 2000, exports were $478 million. By 2003 they had reached $587 million.
- Exports crossed the $1 billion mark in 2007, at $1.012 billion, and reached $1.157 billion in 2010.
- By 2014, the total was $1.569 billion, and it held nearly flat at $1.571 billion in 2015.
- A small drop to $1.43 billion in 2016 was followed by gains to $1.643 billion in 2017 and $1.795 billion in 2018.
- Exports fell to $1.542 billion in 2019 and $1.388 billion in 2020.
- Then came a big rebound: $1.586 billion in 2021, $2.064 billion in 2022, $2.225 billion in 2023 and a record $2.463 billion in 2024.
So the 2025 dip follows a stretch of strong gains. Even so, industry leaders see it as a warning sign.
What the Industry Is Asking For
Robert Maron, DISCUS senior vice president for international trade policy and market access, made the case in plain terms.
“Our industry has demonstrated what American manufacturers can accomplish when they have fair and reciprocal access to global markets,” said Robert Maron, DISCUS senior vice president for international trade policy and market access. “For U.S. spirits producers, increasing exports and opening new markets, not tariffs on imports, represent the most viable path to returning to growth and global competitiveness. We urge the administration to swiftly implement the trade agreements already negotiated, pursue new market access opportunities and secure the permanent return to tariff-free trade with our key trading partners.”
In short, the group wants three things. It wants zero-for-zero tariffs made permanent, trade agreements that are already negotiated put into effect, and new deals that open more markets.
What “Zero-for-Zero” Means
Zero-for-zero means that two trading partners agree not to charge tariffs on each other’s spirits. The U.S. spirits sector currently has this kind of arrangement with 51 countries.
Those countries matter a lot to the bottom line. In 2025, 81% of U.S. spirits exports went to countries that impose zero tariffs. About 98% of U.S. spirits imports came from those same countries. That shows how much of the trade already runs without tariffs, and why the industry wants to protect that setup.
Canada: A Market That Shrank Fast
Canada has been one of the biggest trouble spots. Starting in March 2025, Canadian provinces began sales bans on American spirits. From the start of those bans through December 2025, U.S. spirits exports to Canada fell 70% compared with the same period a year earlier.
The dollar figures show how steep the drop was. From March through December 2024, U.S. spirits exports to Canada totaled about $203 million. For the same months in 2025, the total was about $60 million.
A Look at the Month-by-Month Drop
Before the bans, the two years looked fairly close. In January, exports were $14.1 million in 2024 and $12.8 million in 2025. In February, they were $20.1 million in 2024 and $15.8 million in 2025.
Then March 2025 arrived, and the numbers fell off a cliff:
- March: $18.1 million in 2024, down to $5.1 million in 2025
- April: $20.0 million in 2024, down to $2.9 million in 2025
- May: $22.0 million in 2024, down to $2.9 million in 2025
- June: $21.1 million in 2024, down to $3.9 million in 2025
- July: $16.1 million in 2024, down to $5.9 million in 2025
- August: $23.9 million in 2024, down to $8.1 million in 2025
- September: $22.3 million in 2024, down to $6.4 million in 2025
- October: $27.4 million in 2024, down to $12.0 million in 2025
- November: $18.9 million in 2024, down to $7.6 million in 2025
- December: $13.6 million in 2024, down to $5.5 million in 2025
The weakest months were April and May of 2025, when monthly exports sank to just $2.9 million.
A Big Drop in the Rankings
The ripple effects were large. In 2024, Canada was the second-largest export market for U.S. spirits. By 2025, it had fallen to sixth.
DISCUS urged leaders on both sides of the border to reach a resolution. The goal is to put U.S. spirits back on retail shelves throughout Canada and to return both countries’ spirits sectors to permanent zero-for-zero tariffs and full market access.
The European Union: The Biggest Customer
While Canada shrank, the European Union stayed on top. The EU remained the largest destination for U.S. spirits exports in 2025. It received $1.2 billion in U.S. spirits, which made up 51% of all exports.
How the EU Market Has Changed
The EU’s role has grown over the past decade. Here is how total spirits exports to the EU have moved, according to the trade data:
- In 2015, exports to the EU were about $539 million, made up of $438 million in whiskey and $101 million in other spirits.
- By 2018, the total was about $633 million, with $552 million in whiskey and $81 million in other spirits.
- In 2020, the total dipped to about $462 million, with $368 million in whiskey and $94 million in other spirits.
- By 2023, the total had climbed to $885 million, with $707 million in whiskey and $178 million in other spirits.
- In 2024, it reached about $1.235 billion, with $699 million in whiskey and $536 million in other spirits.
- In 2025, the total was about $1.2 billion, with $454 million in whiskey and $746 million in other spirits.
One detail stands out. In 2025, the “other” category of spirits passed whiskey in the EU for the first time in these figures, at $746 million compared with $454 million.
EU vs. Everywhere Else
The charts also compare the EU with the rest of the world. In 2025, the EU took $746 million in other spirits and $454 million in whiskey. Markets outside the EU took $548 million in other spirits and $620 million in whiskey. That means whiskey made up the larger share of sales outside the EU, while other spirits led the way inside it.
The Tariff Threat That Was Put on Hold
The EU had planned a 30% retaliatory tariff on U.S. distilled spirits, set to take effect on Aug. 6. In August 2026, the EU indefinitely suspended that tariff. DISCUS urged the administration to make sure retaliatory tariffs on American spirits are not put back in place.
India: A Bright Spot With Room to Grow
Not every market tells a story of decline. India has become one of the more interesting examples. The tariff on bottled Bourbon there was cut from 150% to 100%, and sales responded.
- Exports of bottled Bourbon to India rose nearly 85% in 2025 compared with 2024.
- Year to date in 2026, bottled Bourbon exports to India are up nearly 160% compared with the same stretch of 2025.
The Fairness Question
DISCUS says it wants more. The group is urging the administration to secure tariff cuts across all categories of bottled and bulk U.S. spirits. It wants those cuts to be at least comparable to the ones India has given to EU and UK spirits.
The gap is real. Spirits from the UK entering India currently face a 75% tariff. EU spirits will get that same lower rate in early 2027. Over the next decade, India’s tariffs on EU and UK spirits will fall to 40%. U.S. spirits, at 100% on bottled Bourbon, would still face a much higher tariff by comparison.
Barriers Beyond Tariffs
Tariffs are only part of the story. The DISCUS submission also lists a wide range of other trade barriers that hurt U.S. spirits exporters in markets around the world. These include:
- Discriminatory tax treatment
- Labeling rules
- Standards
- Other technical barriers
These rules do not always show up as a line on a tax bill, but they can still make it hard or costly to sell a product overseas.
Recent Trade Deals
The submission did give the administration some credit. DISCUS applauded it for securing tariff reductions for American spirits through agreements with Argentina, Cambodia, Malaysia, Indonesia, Taiwan and Ecuador.
The dollar amounts are small for now. U.S. spirits exports to those six countries came to $27.5 million in 2025, roughly 1% of total U.S. spirits exports. Still, DISCUS wants those deals put into effect quickly. It also wants the administration to chase more agreements with priority markets, including India, Brazil, Vietnam and Thailand.
Why This Matters Back Home
The trade fight is not only about overseas shelves. It ties into American jobs, farms and factories.
Maron put it this way: “The U.S. distilled spirits industry is a major contributor to American manufacturing, agriculture, exports and employment, but distilleries need new access to international markets to compete and grow,” added Maron. “Securing fair and reciprocal market access and removing unnecessary trade barriers will help American distillers increase exports, support jobs and create greater opportunities throughout the spirits supply chain.”
The industry’s footprint is large:
- It generates more than $250 billion in annual economic activity.
- It supports about 1.7 million jobs across production, distribution, hospitality and retail.
- It sourced more than 2.73 billion pounds of grain from American farmers in 2024, an increase of 134% over the last decade.
That farm connection stands out. When distillers sell more abroad, they buy more grain at home, and that helps growers in farm country.
The Big Picture
The story that comes out of the report is one of strong long-term growth that ran into trouble in 2025. Exports grew from $478 million to $2.37 billion in 25 years, but one year of trade disputes and bans trimmed the total and knocked Canada from the number two spot to number six.
At the same time, the numbers from India and the EU show how much the rules of trade can matter. A lower tariff in India sent Bourbon sales sharply higher. A suspended tariff in the EU kept the industry’s largest market open.
What happens next depends on negotiators. DISCUS wants permanent zero-for-zero tariffs, quick action on the deals already made, new agreements with India, Brazil, Vietnam and Thailand, and a lasting fix with Canada. Whether Washington delivers will help decide if 2025 was a short pause or the start of a longer slowdown.
About the Group Behind the Report
The Distilled Spirits Council of the United States is the leading voice and advocate for distilled spirits in the U.S. It works on legislative, regulatory and public affairs issues at the local, state, federal and international levels. Its members are committed to responsibility and encourage adults who drink to do so in moderation.
