Importance of Trade
Why Trade Matters to the U.S. Spirits Sector
The ability to export provides U.S. spirits producers access to adult consumers around the globe, thus supporting jobs in the U.S. agriculture, manufacturing, hospitality and logistics sectors in the U.S. economy as a whole. Exporting is vital to the long-term viability of the sector.
The Distilled Spirits Council of the United States (DISCUS) supports the efforts of the United States to open markets for U.S. spirits exports. Opening markets has helped U.S. distillers export to over 130 countries around the world. U.S. spirits exports have quintupled since 2000, rising from $478 million in 2000 to more than $2.4 billion in 2024.
Since 2005, the U.S. spirits sector has experienced a renaissance, and the number of distilleries skyrocketed from fewer than 100 to over 3,100. This growth depends heavily on international trade. In 2024, 42 states exported American spirits, and 36 states exported American Whiskey.
The U.S. Spirits Sector is the Model for Fair and Reciprocal Trade
The U.S. spirits sector has a fair and reciprocal playing field with 51 markets providing tariff-free access for U.S. spirits, including the EU, Canada, Mexico, Japan, and Australia. In 20204, nearly 86% of U.S. spirits exports go to countries that have eliminated tariffs on U.S. spirits. Additionally, approximately 98% of spirits imports originate from countries that have eliminated tariffs on U.S. spirits exports.
Securing fair and reciprocal zero-for-zero tariffs with other trading partners will be key to the continued growth and long-term viability of the U.S. spirits sector.
The U.S. Spirit Sector is Unique
Certain types of spirits, such as Bourbon, Tennessee Whiskey, Tequila, Cognac, and Scotch Whisky, are recognized as “distinctive products” by the U.S. and our trading partners. Bourbon and Tennessee Whiskey, the largest categories of American spirits exports, are recognized by 45 countries as “distinctive products” of the U.S. They can only be made in their designated countries – Bourbon and Tennessee Whiskey in the U.S., Tequila in Mexico, Cognac in France, and Scotch Whisky in Scotland. This recognition protects the integrity of these premium products and ensures their quality and authenticity for consumers in the United States and worldwide.
Countries that Recognize Bourbon and Tennessee Whiskey as Distinctive Products of the U.S.
Foreign Trade Barriers Inhibit U.S. Spirits Sector’s Growth
U.S. spirits exporters face an array of tariff and non-tariff barriers in foreign markets, which inhibit the sector’s long-term growth prospects.
Impact of Tariffs on Spirits
Tariffs imposed by the EU and UK on American Whiskeys and other U.S. spirits from 2018 to 2021 in the steel and aluminum and large civil aircraft disputes negatively impacted U.S. spirits producers. Total American Whiskey exports dropped by 18%, and total spirits exports fell by 12% during that period. These tariffs eroded access to our largest export market, halted investments in the U.S., prevented U.S. job growth, and limited our industry’s ability to capture new markets. The continued threat of a return of retaliatory tariffs and new import tariffs poses a serious risk to the U.S. spirits sector’s livelihood.
Non-Tariff Barriers
In addition to tariffs, U.S. spirits exports face an array of non-tariff market access barriers that inhibit the sector’s ability to increase exports. These barriers include discriminatory taxes, unnecessarily trade-restrictive or discriminatory standards/regulations, and advertising bans.
Supporting U.S. Spirits Exports
DISCUS’ export promotion program, supported by the U.S. Department of Agriculture, aims to educate the hospitality industry, adult consumers, and media in key spirits export markets on the taste, heritage, and style of American distilled spirits and assist and support American distillers to expand their reach in foreign markets.