U.S. Spirit Exports Hit A Record High In 2024, But Tariffs Threaten To Curtail Growth

• U.S. spirit exports hit a record high in 2024, topping $2.4 billion
• But experts worry that President Donald Trump's new tariffs could curtail that growth, as the largest markets for these exports are imposing retaliatory tariffs
• American whiskey, the largest spirit export, faces particular risk

U.S. spirits exports hit a record high of $2.4 billion in 2024, according to a report released Thursday by the Distilled Spirits Council of the United States. That's up 10% from 2023.

A statement from DISCUS attributed the growth to the sector "having a fair and reciprocal playing field with 51 established markets that have provided tariff-free access for U.S. spirits."

The increase was driven primarily by exports to the European Union, the largest export market for U.S. spirits, which went up by 39%. DISCUS CEO Chris Swonger said in a statement that  "U.S. spirits exports hit a new high in 2024, recapturing lost market share since the UK and EU lifted retaliatory tariffs that were applied between 2018-2021 in connection with two trade disputes." 

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But industry insiders like Eric Gregory, president of the Kentucky Distillers' Association, warn that President Donald Trump's retaliatory tariffs could see those gains reverse. In a statement on X, he wrote, "Retaliatory measures… harm these markets and jeopardize growth for years to come."

"Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth," Swonger said in a statement.

CNN reports that American whiskey has long been at the center of these trade disputes.

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DISCUS says that American whiskey accounted for 54% of spirit exports in 2024, and brought in $1.3 billion last year alone. However, that number was already down by 5.4% compared to 2023.

According to the DISCUS report, when retaliatory tariffs on American spirits were first enacted by the EU and UK in 2018, whiskey exports saw an 18% drop in those markets, substantially more than any other type of spirit. Since the tariffs were suspended in 2022, American whiskey exports in those areas have surged by 20%.

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DISCUS worries that history might be on the verge of repeating itself. Another sharp decline in whiskey exports could have a domino effect on the rest of the industry.

In response to Trump's tariffs, Canada, the second-largest market for U.S. spirit exports, began imposing a 25% rate on all U.S. spirits, and many stores have removed them from shelves entirely. Additionally, China has hit U.S. spirit imports with a 160% tariff, and Turkey has added a 70% levy.

"We are thankful for President Trump's early success in securing India's reduction of its tariff on Bourbon from 150% to 100%," said Swonger. "It's our hope that the administration builds on this positive momentum by securing additional tariff reductions in India and reducing trade barriers in other countries."

The DISCUS report concludes that long-term growth for the industry will be dependent on ensuring a permanent return to zero-for-zero spirits tariffs and securing new market-opening agreements with countries where high spirits tariffs are still applied.

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