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FILE PHOTO: Workers bundle bottles of Jack Daniel’s Single Barrel Select Tennessee Whiskey on the corporate’s distillery in Lynchburg, Tennessee, U.S., on Tuesday, May 18, 2021.
Luke Sharrett | Bloomberg | Getty Images
U.S. spirit exports reached a report $2.4 billion in 2024, pushed largely by way of tariff issues and ongoing international business disputes.
That is in line with the American Spirits Exports document revealed by way of business affiliation the Distilled Spirits Council of the United States on Thursday.
“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,” mentioned DISCUS President and CEO Chris Swonger. “Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth.”
U.S. spirits exports to the EU surged by way of 39%, fueled by way of issues over the prospective go back of a 50% tariff on American whiskey imports in 2025, which was once suspended in 2022.
In March, Trump threatened to place 200% price lists on French Champagne and different EU spirits, which led European international leaders — in particular from Ireland, France and Italy — to suggest for bourbon price lists no longer to go back as a part of retaliatory measures.
The danger of that exact tariff has light fairly because the U.S. and EU proceed business negotiations.
Whiskey barrels are put on a truck on the Jack Daniel Distillery in Lynchburg, Tennessee, U.S. February 3, 2025.
Kevin Wurm | Reuters
Approximately 50% of U.S. spirits had been exported to the EU — totaling $1.2 billion — making it the most important export marketplace.
Exports to the remainder of the sector, then again, declined by way of just about 10%, the document discovered, which displays the wider softening alcohol class.
Suntory Beam, the Japanese maker of Jim Beam bourbon whiskey, mentioned in December it was once making ready for price lists by way of stockpiling provide in Europe. The corporate is already closely reliant on France and the United Kingdom, which make up over 50% of its international exports marketplace during the last 8 years, in line with international business knowledge from Panjiva.
Several of the highest states for exports in 2024 are vital bourbon economies, in line with the document.
Top 5 states exporting U.S. spirits:
- Tennessee ($934 million)
- Kentucky ($751 million)
- Texas ($354 million)
- Florida ($334 million)
- Indiana ($142 million)
Still, American whiskey exports, which accounted for 54% of all U.S. spirits exports, dipped 5.4% to $1.3 billion.
Swonger mentioned that whilst outlook for spirits stays extremely unpredictable with ongoing business disputes, one reality rings true within the knowledge: Exports pass to international locations that experience eradicated price lists.
“We are thankful for President Trump’s early success in securing India’s reduction of its tariff on Bourbon from 150% to 100%,” Swonger mentioned. “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.”
Headwinds stay for the business. Canada, the second one greatest marketplace for U.S. spirits exports, imposed a 25% tariff in on alcohol coming over the border in March, and a number of other provinces have got rid of product from cabinets.
Distiller and brewers additionally face metal and aluminum price lists that have an effect on fabrics prices for brewers like Constellation Brands, which reduced long-term 2027 and 2028 steerage considerably round “the expected have an effect on of price lists.”
