Summary
The American whiskey industry faces major challenges, including a sharp drop in exports due to trade tensions and tariffs. Exports to Canada, a significant market, have dropped drastically, significantly affecting profits for U.S. whiskey makers, especially in Tennessee and Kentucky. While there are some positive signs, like the lifting of retaliatory tariffs by Canada, the overall impact of ongoing political and trade disputes continues to strain the industry.
Key Facts
- The American whiskey industry has seen a 13% drop in export sales.
- Exports to Canada fell by 85% in the second quarter of the year.
- Canadian liquor boards in some provinces continue to boycott U.S. alcohol.
- The boycott impacts U.S. whiskey producers' profits, especially in Tennessee and Kentucky.
- Major markets like the European Union, Japan, and the United Kingdom also recorded export declines of 12%, 23%, and 29%, respectively.
- Trade tensions and tariffs are major factors driving these declines in exports.
- Domestic whiskey sales in the U.S. are stagnant, with inventory levels at record highs.
