There’s a double whammy hitting the U.S. alcohol industry lately: Americans are drinking less, while foreigners have soured on our exported spirits amid higher tariffs. Those dynamics have worsened a crisis that’s already seen some distilleries go out of business this year and thousands of jobs eliminated.

Exports of U.S. spirits to Canada plunged by 85% in the second quarter from a year ago, marking the steepest declines among four key markets, according to data released Monday by the Distilled Spirits Council of the United States (DSCUS). Overall, exports of American spirits fell 9% in the second quarter as U.S. spirits makers pay the price of persistent trade tensions.

Particularly problematic for U.S. spirits makers is the double-digit decline in exports to each of four key markets t

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