U.S. spirits exports hit a record $2.4 billion in 2024, up nearly 10% compared to 2023, according to a report released today by the Distilled Spirits Council of the United States (DISCUS).
The surge was attributed to fears over the potential return of EU tariffs on American whiskeys in 2025, which were suspended in 2022. Exports increased 39% to the EU, while declining by nearly 10% in the rest of the world.
The report comes after a rollercoaster few months of tariff threats and negotiations that have entangled U.S. spirits in a trade war.
“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,” said Chris Swonger, DISCUS president and CEO, in a statement. “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. and EU spirits sectors back to zero-for-zero tariffs, he added. During President Donald Trump’s first term, the EU’s and UK’s retaliatory tariffs caused total U.S. spirits and American whiskey exports to tumble by 12% and 18%, respectively, between 2018-2021. Since the tariffs were suspended in 2022, American whiskey exports to the EU surged nearly 60%.
But the outlook for 2025 U.S. spirits exports is unpredictable due to ongoing trade disputes, negotiations and retaliatory tariffs, said Swonger.
Canada, the second largest market for U.S. spirits exports, began imposing a 25% tariff on all U.S. spirits on March 13, and most Canadian provinces have removed all U.S. alcohol products from retail stores. Additionally, U.S. spirits have been hit with a 160% retaliatory tariff in China and a 70% retaliatory tariff by Turkey.
Swonger highlighted one bright spot: India’s reduction of its tariff on bourbon from 150% to 100%.
“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,” he said.
EU Largest Export Market; Cordials, Vodka Drive Growth
Approximately 50% of U.S. spirits were exported to the EU (totaling $1.2 billion), making it the largest export market. Canada came in second at $221 million, followed by the UK ($137 million), Australia ($131 million) and Mexico ($126 million).
American whiskey exports declined by 5.4% to $1.3 billion in 2024 but continue to lead U.S. spirits exports, accounting for 54%. The top five markets for American whiskeys in 2024 were: the EU ($699 million), Australia ($113 million), United Kingdom ($86 million), Japan ($79 million) and Canada ($73 million).
Cordials and vodka picked up the slack, and exports reached record levels, driving overall U.S. spirits exports growth in 2024. Cordials exports rose by 128% to $367 million and vodka increased by 82% to $292 million compared to 2023.
The top 10 states exporting U.S. spirits were:
- Tennessee ($934 million)
- Kentucky ($751 million)
- Texas ($354)
- Florida ($334 million)
- Indiana ($142 million)
- Illinois ($128 million)
- California ($70 million)
- Arkansas ($46 million)
- Maine ($37 million)
- New York ($29 million)