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FILE PHOTO: Workers package bottles of Jack Daniel’s Single Barrel Select Tennessee Whiskey at the company’s distillery in Lynchburg, Tennessee, U.S., on Tuesday, May 18, 2021.
Luke Sharrett | Bloomberg | Getty Images
U.S. spirit exports reached an unprecedented $2.4 billion in 2024, marking a significant recovery influenced largely by ongoing tariff apprehensions and global trade disputes.
This information was revealed in the American Spirits Exports report released by the Distilled Spirits Council of the United States (DISCUS) on Thursday.
“In 2024, U.S. spirits exports reached a new record, reclaiming lost market presence following the lifting of retaliatory tariffs by the UK and EU, which had been in place from 2018 to 2021,” stated DISCUS President and CEO Chris Swonger. “However, the ongoing trade tensions unrelated to the spirits sector have created instability, leaving many American distillers hesitant and limiting the potential for sales growth.”
Exports of U.S. spirits to the European Union surged by 39%, spurred by worries about the possible reinstatement of a 50% tariff on American whiskey imports in 2025, a measure that had been suspended in 2022.
In March, former President Trump threatened to impose a 200% tariff on French Champagne and other spirits from the EU, prompting leaders from Ireland, France, and Italy to argue against the re-implementation of bourbon tariffs as a retaliatory action.
Fortunately, the immediacy of that tariff threat has diminished as trade negotiations between the U.S. and EU progress.
Whiskey barrels are loaded onto a truck at the Jack Daniel Distillery in Lynchburg, Tennessee, U.S. February 3, 2025.
Kevin Wurm | Reuters
Approximately 50% of U.S. spirits exports went to the EU, amounting to $1.2 billion, solidifying its status as the largest export market for American spirits.
Conversely, exports to other regions experienced a decline of nearly 10%, reflecting a general downturn in the alcohol market.
Suntory Beam, the Japanese company behind Jim Beam bourbon, announced in December that it was preparing for potential tariffs by stockpiling inventory in Europe, highlighting its heavy dependence on France and the UK, which together constitute over 50% of its global exports over the past eight years, according to data from Panjiva.
The report also identified significant bourbon-producing states contributing to U.S. spirit exports in 2024.
Top 5 states exporting U.S. spirits:
Tennessee ($934 million)
Kentucky ($751 million)
Texas ($354 million)
Florida ($334 million)
Indiana ($142 million)
Despite this growth, American whiskey exports, which comprised 54% of all U.S. spirits exports, saw a decline of 5.4%, totaling $1.3 billion.
Swonger emphasized that while the future of spirits exports is fraught with uncertainty due to ongoing trade disputes, a consistent trend emerges: exports thrive in nations that have removed or reduced tariffs.
“We appreciate President Trump’s initial success in negotiating a reduction of India’s bourbon tariff from 150% to 100%,” he remarked. “We hope that the current administration continues to build on this momentum to secure further tariff reductions in India and tackle trade barriers in other markets.”
However, challenges persist for the industry. Canada, the second-largest market for U.S. spirit exports, levied a 25% tariff on imported alcohol in March, leading to the removal of products from shelves in several provinces.
Moreover, distillers and brewers continue to face elevated costs for materials due to steel and aluminum tariffs that impact production costs, as exemplified by Constellation Brands, which has notably revised its long-term financial forecasts for 2027 and 2028 in light of the expected effects of these tariffs.
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