U.S. Spirit Exports Rose 10% to Hit Record in 2024 as the Threat of Tariffs Looms
On Thursday, the Distilled Spirits Council of the United States (DISCUS) released its annual American Spirits Exports Report for 2024, which revealed that U.S. spirits exports hit a record high of $2.4 billion, up nearly 10 percent from 2023. This growth was primarily powered by a 39 percent increase in exports to the European Union, while exports to the rest of the world declined by approximately 10 percent.
The report argues that the steep rise in exports to the EU was driven by concerns regarding the potential return of retaliatory tariffs on American whiskey — which accounts for 54 percent of all U.S. spirits exports — in 2025. The tariffs put in place during President Trump’s first administration led to a steep decline in spirits exports globally, with American whiskey exports plunging by 12 percent and 18 percent, respectively, between 2018 and 2021. American whiskey exports to the EU, the largest international market for the category, also dropped 20 percent during the same time period, decreasing from $552 million to $439 million. The tariffs were paused in 2022, but the fear of the return of tariffs under the second Trump administration — as well as apprehension regarding Europe’s retaliatory tariffs — drove many producers to ramp up exports toward the end of last year.
“U.S. spirits exports hit a new high in 2024, recapturing lost market share since the U.K. and EU lifted retaliatory tariffs that were applied between 2018-2021 in connection with two trade disputes,” DISCUS president and CEO Chris Swonger said in the release. “Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth. The EU’s recent decision not to reimpose a retaliatory tariff on American Whiskeys and other U.S. spirits is a positive first step toward getting the U.S.-EU spirits sectors back to zero-for-zero tariffs and untangling spirits from these trade disputes.”
Other factors DISCUS argues contributed to this growth include continued interest in premium American spirits, sustained growth of the global hospitality sector post-pandemic, and an increase in the number of distilleries operating in the U.S., which jumped from less than 100 in 2005 to nearly 3,100 today.
While American distilleries enjoyed impressive growth in 2024, the outlook for 2025 remains uncertain as trade disputes around tariffs continue. Canada, the second largest market for U.S. spirits exports, levied all U.S. spirits with a 25 percent retaliatory tariff on March 13, and most Canadian provinces have removed all American-made alcohol from retail stores. At the time of reporting, China has also imposed 160 percent retaliatory tariffs on all U.S. spirits.
According to DISCUS, sustained growth for the U.S. spirit industry in the future will require a permanent return to zero-for-zero spirits tariffs with existing trade partners and the securing of new market agreements with countries where high spirits tariffs are still applied, such as India, Vietnam, South Africa and others.
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