American Distillers Advocate for ‘Zero-for-Zero’ Trade Amid Export Decline

In the heart of America’s spirited landscape, a call to action reverberates across distiller halls. The country’s leading spirits makers are championing a bold vision: the establishment of a “zero-for-zero” trading environment. This plea emerges as they grapple with a notable downturn in exports — an issue that threatens their global standing and domestic prosperity.

At the core of this appeal lies a desire to mitigate the impact of tariffs, which have cast long shadows over international trade dynamics. According to the Distilled Spirits Council of the United States (DISCUS), these financial barriers have led to a sharp 9% decline in exports during the second quarter of 2025 compared to the previous year. This downturn is particularly pronounced in pivotal markets such as the European Union, Canada, the United Kingdom, and Japan.

The statistics are stark: Canadian exports experienced an astonishing 85% plummet, while shipments to the EU fell by 12%. The U.K. and Japanese markets saw declines of 29% and 23%, respectively. This downturn extends across various spirits, with American whiskey, vodka, and brandy facing double-digit decreases in their international reach.

Chris Swonger, DISCUS’s president and CEO, expressed significant concern over this trend. “The American whiskey success story has been significant over the past 15 to 18 years,” he remarked. The industry had weathered tariffs before, but current global uncertainties have exacerbated challenges, disrupting export strategies and hindering growth.

Swonger emphasized that domestic consumption alone could not bridge the gap left by declining exports, particularly in an era of fierce competition from burgeoning craft distilleries. “Just 25 years ago, we had 60 distilleries in the United States,” Swonger noted. Today, over 3,100 distilleries operate across the nation, many small and seeking to capture international markets.

Recognizing President Trump’s efforts to foster a robust economy, Swonger urged for strategic tariff adjustments. Canada’s recent removal of its 25% tariff on American spirits offered hope that similar actions could be mirrored elsewhere. Such changes would alleviate pressures on U.S. distillers, allowing them to showcase their unique products’ quality and heritage globally.

Tariffs have historically served various policy objectives, from reshoring manufacturing to addressing trade deficits. However, they also risk inflating prices, dampening consumer sentiment, and hindering America’s competitive edge in the global marketplace. The Yale Budget Lab points out that current effective tariff rates are at their highest since 1934.

In a world where products like American whiskey captivate international palates, Swonger argued for lowering trade barriers to facilitate a “sip and taste” competition. This approach could allow U.S. distillers to secure and expand their presence in markets such as the EU and the UK.

As America’s distilleries stand at this crossroads, they await actions that align with global aspirations — reducing tariffs to promote free trade and celebrating distinctiveness through a zero-for-zero trading landscape.

For more details on how these developments impact American distillers and international trade dynamics, visit WACH News (opens in new tab).

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