Exports of American alcohol products have seen a “significant downturn” amid “ongoing trade tensions ,” a U.S. distillers trade group says in a new report, with Canadian exports plummeting far more than any other international market.

The mid-year report from the Distilled Spirits Council, released Monday, says U.S. booze exports to Canada are down a staggering 85 per cent in the second quarter compared to the year before, falling below US$10 million.

By comparison, exports to both the United Kingdom and Japan are down just 23 per cent, while exports to the European Union fell by 12 per cent.

“This trend presents a growing challenge for the U.S. spirits industry,” the report says. “International consumers appear increasingly inclined to substitute U.S. spirits with domestic alternativ

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