U.S. spirits exports reached a record high last year, driven by American whiskeys and buoyed by temporary halts to retaliatory tariffs, a new report from the Distilled Spirits Council of the United States (DISCUS) revealed yesterday.
Total spirits exports climbed by +30%, to $2.06 billion, in 2022, and American whiskey exports increased +32%, to $1.28 billion. But American whiskey exports to the U.K. haven’t rebounded to the same value as prior years, due to tariffs on the category that were imposed in June 2018.
“U.S. spirits producers have begun to recapture lost market share in the EU, but American whiskey exports to the U.K. still lag behind the 2017 pre-tariff level and the threat of tariffs returning continues to stifle growth in these top markets,” said Rob Maron, DISCUS vice president of international trade, in a statement.
Temporary lifts to those retaliatory tariffs contributed to the increased numbers. The EU suspended its 25% tariff on American whiskey in early 2022, followed by the U.K., which cut its tariff in June 2022. Tariffs on vodka, rum, and brandy were also paused for five years starting in 2021.
American Whiskeys accounted for 62% of all spirits exports in value terms, and 23% in volume terms. The top-five markets for the category were the EU, Australia, the U.K., Japan, and Canada.
Overall, global U.S. spirits exports have nearly quadrupled in the past two decades, from $551 million to $2.06 billion. Other leading exports include vodka, rum, brandy, gin, and liqueurs and cordials.
The EU is the largest market for U.S. spirits exports, accounting for 34% of shipments and reaching $703 million. Total U.S. spirits exports to the EU grew by 25% compared to 2021. Other top markets include Canada, the U.K., Australia and Japan.
In addition to the tariff relief, DISCUS attributed a number of factors to the growth, including consumers in key export markets shifting toward premium and super premium American spirits, and the reopening of the global hospitality sector.
Maron called on the Biden administration to secure the permanent removal of the tariffs, initially imposed as a response to the Trump administration’s taxes on steel and aluminum from the EU, which included the U.K. at the time. The EU tariffs are tentatively set to return at the end of 2023.
“That will bring this renewed interest in American whiskey among EU consumers to a screeching halt,” he said.