US Spirits Exports Rally After Trump-Era Retaliatory Tariffs Suspended

(Photo: Karolina Grabowska/Pexels)

Yesterday, Distilled Spirits Council of the United States (DISCUS) released a new report indicating US spirits exports are gradually rebounding. This follows the lifting of European Union and United Kingdom tariffs which were imposed in retaliation to tariffs set by President Donald Trump’s administration. 

American Whiskey accounts for 61% of US spirits exports, including Tennessee Whiskey, Bourbon, American Rye Whiskey, and American Single Malt. Rum is 5% of the overall exports. Total 2021 U.S. spirits exports increased 14% compared to 2020, reaching $1.6 billion, but have yet to reach 2018 pre-tariff levels of approximately $1.8 billion.

Between Jan. to July 2022, total U.S. spirits exports, including American whiskey, increased by 21% and 22%, respectively, over the same period last year (Jan. to July 2021).

“While U.S. spirits exports tumbled between 2018 and 2021 due largely to retaliatory tariffs on American spirits imposed by the EU and UK, this latest data is an encouraging sign that consumers in these key export markets are beginning to return to purchasing American spirits,” said Rob Maron, DISCUS Vice President of International Trade. “We applaud the Biden administration for securing important agreements to suspend retaliatory tariffs on American spirits and are working to return to permanent duty-free trade in spirits.”

DISCUS reported in 2019 that when the Trump administration imposed tariffs on foreign steel and aluminum, U.S. Spirits valued at $763 million were subject to retaliation. One of the harshest tariffs came from Europe, which imposed a 25% percent tax on American whiskey.

Under President Joe Biden’s administration, an agreement was reached between the U.S. and the EU in October 2021 to suspend the EU’s 25% tariffs on American whiskeys. This tariff was officially suspended in January 2022 and will be in effect for two years. An agreement was also reached with the EU in June 2021 to lift retaliatory tariffs on American rum, brandy and vodka for five years which went into effect in July 2021. 

More recently, the US and UK also reached an agreement in March 2022 to remove the U.K.’s retaliatory tariff on American whiskey which went into effect in June 2022. 

“Regaining the EU market is critically important for U.S. spirits exporters,” said Maron.  “Our sector is not immune to the global challenges facing exporters of other U.S. goods. We are confident, that in time, EU consumers will rediscover the range of superb American spirits that distillers are carefully crafting and aging every day across the United States.”

The EU appears to be playing it safe by only providing a two-year suspension, at least for American whiskey. This will surely affect American spirits company’s confidence in fully investing in exportation as distillers often plan years in advance for each release. 

Here at The Daily Pour, we do more than write about current events in spirit. We are the only media property reviewing spirits and aggregating the scores and reviews of other significant voices in the spirit world in one place. If you’re interested in getting a shot of spirit in your morning email, sign up for our Whiskey Deal of the Day Newsletter