Hitting an unprecedented milestone, U.S. spirit exports soared to $2.4 billion in 2024, primarily influenced by tariff apprehensions and prevailing global trade tensions.
This information was revealed in a report released by the Distilled Spirits Council of the United States, a prominent trade association for the spirits industry, on Thursday.
“Exports of U.S. spirits reached an all-time high in 2024, regaining market share that had been lost after the UK and EU lifted retaliatory tariffs imposed between 2018 and 2021,” stated Chris Swonger, President and CEO of DISCUS. “However, persistent trade disputes unrelated to our sector have instilled uncertainty, leaving many U.S. distillers hesitant and limiting their sales potential.”
The report specifically noted a significant 39% increase in spirits exports to the EU, a surge prompted by concerns regarding the potential reintroduction of a 50% tariff on American whiskey imports, which had been suspended in 2022.
In March, former President Trump threatened to impose a hefty 200% tariff on French Champagne and other European spirits, prompting leaders from Ireland, France, and Italy to advocate against reviving bourbon tariffs as a retaliation.
Fortunately, the immediate concern surrounding that tariff has lessened as ongoing trade negotiations between the U.S. and EU progress.
According to the data, approximately 50% of U.S. spirits—valued at $1.2 billion—were exported to the EU, solidifying it as the largest market for these products.
In contrast, exports to other global markets experienced a nearly 10% decline, indicative of a broader downturn in the alcohol sector.
Japanese company Suntory Beam, the maker of Jim Beam bourbon whiskey, revealed in December its strategy to counteract potential tariffs by amassing supplies within Europe. The firm has grown increasingly dependent on France and the UK, which accounted for over half of its globally exported goods in the last eight years, based on global trade statistics from Panjiva.
Notably, several states known for their bourbon production were among the top exporters in 2024, according to the report.
The top five states for U.S. spirit exports include:
- Tennessee ($934 million)
- Kentucky ($751 million)
- Texas ($354 million)
- Florida ($334 million)
- Indiana ($142 million)
Despite this growth, American whiskey exports—accounting for 54% of total U.S. spirits exports—fell by 5.4%, resulting in $1.3 billion.
Swonger emphasized that while the future for the spirits industry remains uncertain due to ongoing trade disputes, one trend is evident: exports flourish in markets that have eliminated tariffs.
“We appreciate President Trump’s earlier achievement in negotiating a tariff reduction in India from 150% to 100% for bourbon,” Swonger added. “We hope the administration will build on this success by pursuing further tariff reductions in India and lowering trade barriers in other nations.”
Despite some positive developments, challenges persist for the industry. Canada, the second-largest market for U.S. spirit exports, enacted a 25% tariff on imported alcohol in March, leading to the removal of certain products from shelves in several provinces.
Moreover, distillers and brewers are grappling with steel and aluminum tariffs that are driving up costs for producers like Constellation Brands, prompting the company to significantly adjust its long-term guidance for 2027 and 2028 based on expected tariff impacts.
