The Distilled Spirits Council of the United States (DISCUS), Washington, D.C., has shared the findings of a recent report, titled American Spirits Exports Report.

The growth in U.S. exports in 2024 was driven by a 39% increase in exports to the European Union (EU), which has zero tariffs on spirits imports. Exports to the rest of the globe declined by almost 10%, DISCUS shares, which reflects the softening of the global spirits market.

The report credits the surge in exports to the EU to concerns over the potential return of tariffs on American whiskeys this year. These tariffs were previously suspended in 2022. DISCUS noted another factor includes the uncertainty at East and Gulf Coast ports due to labor negotiations and a brief port strike in the fall.

“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 to two trade disputes,” Chris Swonger, DISCUS president and CEO, said 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 in getting the U.S.-EU spirits sectors back to zero-for-zero tariffs and untangling spirits from these trade disputes.”

The total U.S. spirits and American whiskey exports tumbled by 12% and 18%, respectively, between 2018-2021. This was driven in large part by the EU’s and UK’s retaliatory tariffs, DISCUS shares. American whiskey exports to the EU, the largest American whiskey export market, plunged 20%, from $552 million to $439 million during the same time, it adds.

Since the tariffs were suspended in 2022, American Whiskey exports to the EU surged nearly 60%, increasing form $439 million in 2021 to $699 million in 2024.

DISCUS’ report also showed that U.S. spirits exports have quintupled since 2000, jumping from $478 million in 2000 to more than $2.4 billion in 2024. The growth of the U.S. spirits exports is in large part due to the sector having a fair and reciprocal playing field with 51 countries that have provided tariff-free access from U.S. spirits, including the EU, Canada, Mexico, Japan and many more, DISCUS states.

Nearly 86% of U.S. spirits exports go to countries that have eliminated tariffs on U.S. spirits and approximately 98% of spirits imports originate from countries that have eliminated tariffs on U.S. spirits exports.

The report shared other factors that have driven long-term growth in exports, including the shift by consumers in key markets toward premium American spirits, the continued strengthening of the global hospitality sector following the pandemic and the rise in U.S. distilleries. The number of U.S. distilleries was less than 100 in 2005 and reaches 3,100 today. Many of today’s distilleries export.

Expectations for 2025

DISCUS’ Swonger noted that the outlook for 2025 U.S. spirits exports is “highly unpredictable” due to the ongoing trade disputes, negotiations and retaliatory tariffs. Canada, which is the second-largest market for U.S. spirits exports, began imposing a 25% tariff on all U.S. spirits on March 13. Most Canadian provinces have removed all U.S. alcohol products from retail stores.

Moreover, U.S. spirits are being hit with a 160% retaliatory tariff in China and a 70% retaliatory tariff by Türkiye.

“We are thankful for President Trump’s early success in securing India’s reduction of its tariff on bourbon form 150% to 100%,” Swonger said. “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.”

Continued long-term growth for the industry will be dependent on ensuring a permanent return to zero-for-zero spirits tariffs with the 51 countries and securing new market opening agreements with countries where high spirits tariffs are still applied, such as India, Vietnam, South Africa and others, DISCUS adds.

The report found the following key findings as well:

• The EU is the largest export market for U.S. spirits.

1. Approximately 50% of U.S. spirits were exported to the EU (totaling $1.2 billion), making it the largest export market.
2. The Top 5 markets for U.S. spirits in 2024 were: 1.) EU, $1.2 billion; 2.) Canada, $221 million; 3.) UK, $137 million; 4.) Australia, $131 million; 5.) Mexico, $126 million.

1. American whiskey exports, which accounted for 54% of all U.S. spirits exports, dipped 5.4% to $1.3 billion.
2. The Top 5 markets for American whiskeys in 2024 were: 1.) EU, $699 million; 2.) Australia, $113 million; 3.) UK, $86 million; 4.) Japan, $79 million; 5.) Canada, $73 million.

1. In 2024, exports of cordials and vodka reached new records, with cordials rising by 128% to $367 million and vodka increasing by 82% to $292 million compared to 2023.

1. The Top 10 states exporting U.S. spirits were: 1.) Tennessee, $934 million; 2.) Kentucky, $751 million; 3.) Texas, $354 million; 4.) Florida, $334 million; 5.) Indiana, $142 million; 6.) Illinois, $128 million; 7.) California, $70 million; 8.) Arkansas, $46 million; 9.) Maine, $37 million; 10.) New York, $29 million.