American whiskey sales saw a drop in domestic sales in 2024 due to inflation affecting consumer spending. However, the looming threat of tariffs poses an even greater challenge for the industry, particularly in key foreign markets. The European Union plans to reinstate tariffs at double the previous rate on American whiskey producers, potentially causing irreparable harm to the industry.
The Distilled Spirits Council expressed concerns that the new tariffs could undo the strong growth that American whiskey sales have seen in Europe. The potential 50% tariff rate would be catastrophic and force many distillers out of the EU market. This threat comes as American whiskey exports have already faced challenges in previous trade conflicts, with exports dropping by 20% during the Trump administration.
While the spirits industry overall maintained its market share in the U.S., revenue slipped in 2024 due to inflation impacting consumer buying habits. The industry is hoping for cooler heads in trade negotiations to avoid further tariffs that could hinder sales both at home and abroad.
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