US spirits exports climbed almost 10% last year as EU customers stocked-up amid fears of tariffs on whiskey.
Export revenues reached a “record” $2.4bn, according to a report released by the US industry body Distilled Spirits Council of the United States (DISCUS).
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Rising US spirits exports were driven by a 39% increase in exports to the EU, where spirits imports – for now – face zero tariffs.
DISCUS linked the surge in EU-bound exports to concerns over the possible return of Brussels’ tariffs on American whiskeys.
US whiskey has been in the spotlight amid the trade tension between Brussels and Washington.
The EU suspended its tariffs on US whiskeys in 2022 but in March lined up a 50% levy on the products after Washington announced tariffs on all steel and aluminium imports into the country.
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By GlobalDataUS President Donald Trump described the planned return of the tariff as “nasty” and threatened a 200% levy on EU alcohol exports across the Atlantic.
At the start of April, Trump unveiled his global “reciprocal” tariffs, which included a universal “baseline” tariff of 10% on all imports but left the EU facing a 20% hike. Brussels responded with its own proposals – but left Bourbon off the list.
Trump announced a 90-day pause on some of the planned US tariffs a week later, although the 10% baseline remains.
DISCUS president and CEO Chris Swonger said yesterday (24 April) the “ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many US distillers on the sidelines and curtailing sales growth”.
US spirits exports to other global markets declined by nearly 10% in 2024, reflecting what DISCUS described as a “softening of the global spirits market”.
Ongoing labour negotiations and a “brief” port strike along the East and Gulf Coasts added to the uncertainty, affecting trade flows, the report said.
Despite a 5.4% drop in 2024, American whiskeys remained the top US spirits export, making up 54% of export sales at more than $1.3bn and 33% of volume.
Exports of cordials and vodka set new records in 2024, with cordials increasing by 128% to $367m and vodka rising by 82% to $292m, DISCUS said.
However, US exports of rum fell by 12% to $86m and brandy dropped by 39% to $23m. Gin exports rose 32% to $53m.
According to DISCUS, the US spirits sector has a “fair and reciprocal playing field” with 51 countries, including major trading partners such as the EU and the UK and its neighbours Canada and Mexico.
However, Canada, the second-largest market for US spirits exports, began imposing a 25% tariff last month. Most Canadian provinces have removed all US alcohol products from retail stores.
US spirits are also being hit with a 160% retaliatory tariff in China and a 70% retaliatory tariff by Türkiye.
Approximately 50% of US spirits exports went to the EU ($1.2bn), making it the largest export market.
The top five markets for US spirits in 2024 were the EU, Canada ($221m), the UK ($137m), Australia ($131m), and Mexico ($126m).
