AMERICAN WHISKEY EXPORTS HIT BIG NUMBERS
American whiskey is certainly having its moment with consumers in the EU and beyond. According to Discus, the category accounted for 63% of US spirits exports in 2023. That share was equivalent to $1.4 billion, an increase of 9% compared with the year before. American whiskey as a category includes Tennessee whiskey, Bourbon, American Rye whiskey and American Single Malt. Total US spirits exports reached a record $2.2 billion last year, up 8% compared to 2022. This follows challenging conditions between 2018 and 2021 due to tariffs imposed by the UK and the EU. Total US spirits exports to the EU grew by 24% compared to 2022. The EU is the largest export market for US spirits, accounting for approximately 40% in 2023 equal to $883 million. The top five markets for spirits in 2023 also include Canada ($262m), Mexico ($139m), Australia ($138m) and the UK ($129m). Free trade agreements are vital to the health of the US spirits industry. Exports to free trade agreement countries, and those with zero duties, reached $1.8 billion in 2023, accounting for 83% of the total. In contrast, high-tariff countries including India (150% tariff), Vietnam (45% tariff) and Brazil (20% tariff on all imported distilled spirits, except bulk whiskey, which is 12% tariff), were responsible for just 3% of total US spirits exports in 2022, totaling $69.2 million. Since the EU suspended its 25% retaliatory tariff on American whiskeys in January 2022, US whiskey exports increased by 61% compared to 2021. Over the span of two years, the export of American whiskey to the EU surged by over 60%, up from $439 million in 2021 to $705 million in 2023 — 50% of total American whiskey exports. In December 2023, the EU announced that it would continue the suspension of tariffs on American whiskeys in the steel and aluminum dispute for 15 months, until March 31, 2025. However, if no permanent resolution is reached, the EU will reimpose its tariff on American Whiskeys at 50%, up from the previously imposed 25%, according to Discus.
