SPIRITS exports rose 8 per cent in 2023 to US$2.2 billion, according to the Distilled Spirits Council of the United States, following the European Union’s suspension of 25 per cent retaliatory tariffs on American whisky.

The tariff suspension in 2022 helped US spirits sales bounce back in the United Kingdom and the EU, which are among the top five export markets for the category.

Export of American whisky to the EU jumped to US$705 million in 2023 from US$439 million in 2021, the data showed.

In 2018, the EU and the United Kingdom imposed import taxes on a wide range of US products, including bourbon whiskies, for four years after the US first thrust tariffs of 25 per cent on EU steel and 10 per cent on EU aluminium.

The trade dispute had hit US spirits exports and resulted in market share loss for American whiskies such as Tennessee whisky, Bourbon, American Rye whisky and American Single Malt in some of the largest export markets.

In December, the EU and US decided to extend the tariff suspension until March 2025. However, if no agreement is reached during the extension period, the EU is expected to double its tariff on American whiskies to 50 per cent.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

“There probably was some stockpiling happening to get ahead of the 50 per cent tariff in the second half of the year” in 2023 given the strong demand for premium American spirits in international markets, said Robert Maron, vice-president of international trade at Distilled Spirits Council of the US.

As per the Council, American whiskies saw a surge of 9 per cent in export value to US$1.4 billion and accounted for 63 per cent of all US spirits exports last year. REUTERS