{"id":208124,"date":"2025-04-27T04:54:13","date_gmt":"2025-04-27T04:54:13","guid":{"rendered":"https:\/\/peraltafinancing.com\/alcohol\/u-s-spirits-exports-hit-record-high-amid-growing-trade-tensions\/"},"modified":"2025-04-27T04:54:13","modified_gmt":"2025-04-27T04:54:13","slug":"u-s-spirits-exports-hit-record-high-amid-growing-trade-tensions","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=208124","title":{"rendered":"U.S. Spirits Exports Hit Record High Amid Growing Trade Tensions"},"content":{"rendered":"


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Credit: Paul Teysen \/ Unsplash<\/a><\/figcaption><\/figure>\n

U.S. spirits exports reached a record $2.4 billion in 2024, representing a 10% increase from 2023, according to a new report from the <\/span>Distilled Spirits Council of the United States<\/span><\/a> (DISCUS). This growth was primarily driven by a 39% surge in exports to the European Union, while exports to other global markets declined by nearly 10%.<\/span><\/p>\n

The impressive gains come as ongoing trade disputes and potential new tariffs cast uncertainty over the industry\u2019s future performance. Exports to the EU were partially fueled by concerns about possible tariff reinstatement in 2025, prompting accelerated shipments during 2024.<\/span><\/p>\n

\u201cU.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,\u201d said <\/span>DISCUS<\/span><\/a> President and CEO Chris Swonger.<\/span><\/p>\n

Trade Disputes Threaten Growth<\/span><\/h2>\n

The impressive growth follows a difficult period from 2018-2021 when US spirits exports fell 12% while American whiskey exports specifically dropped 18% due to retaliatory tariffs from the EU and UK. Since those tariffs were suspended in 2022, American whiskey exports to the EU have surged nearly 60%, rising from $439 million to $699 million.<\/span><\/p>\n

However, the Trump administration\u2019s trade policies are creating new challenges for distillers. Canada, the second-largest market for U.S. spirits exports, began imposing a 25% tariff on all US spirits on March 13, with most Canadian provinces removing U.S. alcohol products from retail stores entirely.<\/span><\/p>\n

Additionally, US spirits face a 160% retaliatory tariff in China and a 70% tariff in T\u00fcrkiye, both stemming from ongoing trade disputes.<\/span><\/p>\n

Swonger acknowledged early positive developments, noting: \u201cWe are thankful for President Trump\u2019s early success in securing India\u2019s reduction of its tariff on Bourbon from 150% to 100%. It\u2019s our hope that the administration builds on this positive momentum by securing additional tariff reductions in India and reducing trade barriers in other countries.\u201d<\/span><\/p>\n

Record Growth for Cordials and Vodka<\/span><\/h2>\n

While American whiskey remains the leading U.S. spirits export at $1.3 billion (54% of total exports), it actually saw a decline in 2024. The overall export growth was instead driven by remarkable performances from cordials and vodka.<\/span><\/p>\n

In 2024, cordials exports surged 128% to reach $367 million, while vodka exports jumped 82% to $292 million compared to 2023.<\/span><\/p>\n

The EU remains the dominant market for U.S. spirits, accounting for approximately 50% of all exports at $1.2 billion. The top five export markets in 2024 were: the European Union ($1.2 billion), Canada ($221 million), the United Kingdom ($137 million), Australia ($131 million), and Mexico ($126 million).<\/span><\/p>\n

Continued growth will depend heavily on avoiding new trade barriers and securing additional market access agreements. Without a resolution to current disputes, the record 2024 performance could prove difficult to maintain.<\/span><\/p>\n

Swonger added: \u201cUnfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth. The EU\u2019s 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.\u201d<\/span><\/p>\n<\/p><\/div>\n