U.S. spirits exports surged to a record $2.4 billion in 2024, marking a significant rebound as distillers regained lost market share following the removal of EU and UK retaliatory tariffs that had been in place from 2018 to 2021. This growth, while promising, is tempered by ongoing global trade tensions that continue to inject uncertainty into the sector.
The European Union remained the top export destination, accounting for $1.2 billion, or about 50% of total U.S. spirits exports. This represented a 39% year-over-year increase, driven largely by preemptive buying amid fears that a suspended 50% tariff on American whiskey could be reinstated in 2025. The potential for new tariffs, including threats earlier this year to impose a 200% tariff on EU spirits such as French Champagne, has kept exporters and governments on edge. Diplomats from Ireland, France, and Italy have been actively pushing to prevent bourbon from being targeted in any future retaliatory measures.
While EU exports climbed, exports to the rest of the world declined nearly 10%, reflecting a broader slowdown in the global alcohol market. Countries where tariffs have been lifted continue to show the strongest growth, highlighting the direct impact of trade policy on export performance.
Among the top contributors to U.S. spirits exports in 2024 were states deeply rooted in bourbon production. Tennessee led the way with $934 million in exports, followed by Kentucky at $751 million. Texas, Florida, and Indiana rounded out the top five. American whiskey remained the leading export category, making up 54% of all spirits shipped abroad, although exports in that segment dipped 5.4% to $1.3 billion.
Japan’s Suntory Beam, producer of Jim Beam, has responded to tariff risks by stockpiling whiskey in Europe, underscoring the lengths some producers are taking to protect their supply chains. The company relies heavily on the UK and France, which together represent over half of its export volume.
Trade tensions persist, especially with Canada, the second-largest U.S. spirits export market, which imposed a 25% tariff in March. Some provinces have even pulled American products from store shelves. Meanwhile, steel and aluminum tariffs continue to pressure input costs, particularly for brewers, affecting long-term financial outlooks across the industry.
Industry leaders stress that continued progress in reducing global trade barriers will be essential to sustaining export momentum and supporting American distillers in an increasingly volatile market.
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