WASHINGTON — U.S. spirits exports totaled a record-high $2.2 billion in 2023, according to an American Spirits Export Report released by the Distilled Spirits Council of the United States. 

Up 8% compared to last year, this follows the lifting of retaliatory tariffs on American whiskeys. Accounting for 63% of all U.S. spirits exports, American whiskeys increased by 9% over 2022 to reach a record $1.4 billion.

"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 U.K.," said Rob Maron, DISCUS vice president of international trade.

"The tariffs imposed from 2018-2021 as part of two separate disputes between the U.S., EU and U.K. have since been suspended or removed, presenting U.S. spirits producers with an opportunity to recapture lost market share in some of the U.S.’ largest export markets. Over the span of two years, American whiskey exports to the EU surged by more than 60%, climbing from $439 million in 2021 to $705 million in 2023."

The EU announced in December 2023 it would continue the suspension of tariffs on American whiskeys in the steel and aluminum dispute for 15 months, until March 31, 2025. The EU will reimpose its tariff on American whiskeys at 50% if no agreement is reached, up from the previously imposed 25%.

"We urge the Biden administration to continue working to secure the permanent removal of these tariffs," Maron said. "The EU’s 15-month tariff suspension is welcome news, but the uncertainty for the future continues to hold craft distillers back from exporting their spirits."

According to the report, the following factors contributed to the long-term growth of U.S. spirits exports:

• The range of trade agreements that eliminated import tariffs and opened many foreign markets for distilled spirits
• The lifting of retaliatory tariffs
• The shift by consumers in key exports markets toward premium and super-premium American spirits
• The continued reopening of the global hospitality sector
• An increase in distilleries in the U.S., from fewer than 100 in 2005 to more than 2,600 now

The report added distilled spirits were exported from 45 states in 2023, with Kentucky at No. 2 ($505 million), only behind Tennessee ($983 million). Over the past two decades, global U.S. spirits exports have increased 280%, from $587 million in 2002 to more than $2.2 billion in 2023.