U.S. spirit exports plunge amid trade tensions

Core Insights - American liquor exports experienced a 9% decline in the second quarter due to trade tensions affecting major markets [1] - The most significant drop was observed in Canada, where exports plummeted by 85%, despite the lifting of retaliatory tariffs [2] - Shipments to the UK and Japan also saw declines of over 23% each, while sales to the EU dropped by 12% [2][3] - These regions collectively account for 70% of the US liquor export market [3] - The whiskey sector is particularly impacted, with distillers facing record high inventories that have tripled since 2012, while domestic sales are stagnating [4] - The industry is calling for adjustments to trade policies to eliminate trade barriers, emphasizing the need for a zero-for-zero tariff environment [3] Industry Performance - The performance of the sector will be further evaluated with the upcoming earnings report from Constellation Brands [5]