File photo: Employees take bottles from Jack Daniel's single Vat Select Tennessee Whiskey in the distillery of the company in Lynchburg, Tennessee, US, on Tuesday, May 18, 2021.
Luke Sharrett | Bloomberg | Getty images
US Spirit Export reached a record of $ 2.4 billion in 2024, largely driven by tariff problems and continuous global trade conflicts.
According to the American Spirits Exports report, that was published by Trade Association de Distilled Spirits Council of the United States on Thursday.
“US Spirits Exports reached a new high point in 2024, in which the lost market share was recaptured since the UK and the EU retaliation rates that were applied between 2018-2021,” said Discus President and CEO Chris Swonger. “Unfortunately, continuous trade conflicts that are not related to our sector, caused uncertainty, so many American distillers are kept on the sidelines and limit revenue growth.”
US Spirits exports to the EU with 39%, fed by concern about the potential return of a rate of 50% on the import of the American Whiskey in 2025, which was suspended in 2022.
In March, Trump threatened to give 200% rates for French champagne and other EU spirits, which brought European world leaders – in particular from Ireland, France and Italy – to argue for Bourbont rates not to return as part of retaliation measures.
The threat of that specific rate is somewhat faded as the US and the EU continues trading negotiations.
Whiskey barrels are placed on a truck in the Jack Daniel Distillery in Lynchburg, Tennessee, US 3 February 2025.
Kevin Wurm | Reuters
About 50% of American spirits were exported to the EU – a total of $ 1.2 billion – making it the largest export market.
The export to the rest of the world, however, fell by almost 10%, the report showed that the broader mitigating alcohol category reflects.
Suntory Beam, the Japanese maker of Jim Beam Bourbon Whiskey, said in December that it was preparing for rates by storing the offer in Europe. The company is already highly dependent on France and the United Kingdom, which, according to the worldwide trade data of Panjiva, makes more than 50% of its global export market.
According to the report, several of the top states for export in 2024 are important bourboneconomies.
Top 5 states that export American spirits:
- Tennessee ($ 934 million)
- Kentucky ($ 751 million)
- Texas ($ 354 million)
- Florida ($ 334 million)
- Indiana ($ 142 million)
Yet the export of the American whiskey, which was good for 54% of all US exports, fell 5.4% to $ 1.3 billion.
SWonger said that although prospects for spirits remain very unpredictable with current trade conflicts, a fact is true in the data: Export goes to countries that have eliminated the rates.
“We are grateful for President Trump's early success in securing India's reduction in his rate on Bourbon from 150% to 100%,” Swonger said. “It is our hope that the administration builds at this positive momentum by getting extra rate reductions in India and reducing trade barriers in other countries.”
Wedwind remains for the industry. Canada, the second largest market for export of American spirits, imposed a rate of 25% in alcohol that crossed the border in March, and several Provinces have removed the product from the shelves.
Distiller and Brouwers are also confronted Constellation brandswhich reduced the guidelines in the long term 2027 and 2028, considerably around “the expected impact of rates”.
