U.S. spirits exports surge in 2023 to reach record US$2.2B 

USA – A recently released American Spirits Export Report by the Distilled Spirits Council of the United States reveals that 2023 marked a significant milestone for American spirits exports, reaching record highs after the removal of retaliatory tariffs on American whiskey. 

The report indicates that U.S. spirits exports experienced an 8 percent increase, totaling US$2.2 billion in 2023 compared to the previous year.  

Notably, American Whiskeys, constituting 63 percent of all U.S. spirits exports, soared by 9 percent to achieve a historic high of US$1.4 billion. 

The report noted the surge in American whiskey exports to the European Union (EU), which spiked from US$439 million in 2021 to an impressive US$705 million in 2023.  

The EU emerged as the largest export market for the U.S., accounting for about 40 percent of total spirits exports amounting to US$883 million. 

The U.S. spirits industry has faced a challenging period due to a trade dispute that led to the imposition of import taxes by the EU and the United Kingdom in 2018.  

These tariffs affected various U.S. products, including bourbon whiskeys, for four years in response to U.S. tariffs on EU steel and aluminum.  

American whiskeys, such as Tennessee whiskey, Bourbon, American Rye whiskey, and American Single Malt, experienced a decline in market share in key export markets. 

Rob Maron, Vice President of International Trade at DISCUS, expressed optimism about the recovery, stating, “This latest report shows that U.S. exports are continuing to rebuild after plummeting from the devastating retaliatory tariffs on American spirits imposed by the EU and UK.” 

While the tariffs have been suspended, the report highlights the need for a permanent resolution.  

The EU announced a 15-month extension of the suspension of tariffs on American whiskey in December 2023, effective until March 31, 2025. Should an agreement not be reached by then, the EU has the option to reimpose a 50 percent tariff, doubling the previous rate of 25 percent. 

Maron urged the Biden administration to work towards a permanent tariff removal, emphasizing the prolonged uncertainty for craft distillers looking to export their spirits. 

The report attributes the long-term growth of U.S. spirits exports to factors such as trade agreements eliminating import tariffs, consumer preference for premium American spirits, the reopening of the global hospitality sector, and the remarkable increase in U.S. distilleries from fewer than 100 in 2005 to over 2,600 today. 

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