An Unwanted Double: US Sales Fall for American Whiskeys as Threats of a Trade War Heat Up

The American whiskey industry is facing a double blow: a decline in domestic sales and the looming threat of a trade war, which could further exacerbate the situation. As the 2024 presidential election approaches, the industry is bracing for potential tariffs that could significantly impact their business, both domestically and internationally.



According to data from SipSource, a data crunching tool run by the Wine & Spirits Wholesalers of America, spirits sales in the U.S. were down by nearly 3 percent in the year leading up to March of 2024. This decline is particularly concerning for the American whiskey industry, which has been grappling with the impact of tariffs imposed by the EU in 2018. The Distilled Spirits Council of the United States (DISCUS) estimates that American whiskey exports to the EU fell by 20 percent between 2018 and 2021, resulting in a loss of about $112 million in revenue.



The potential return of tariffs under a Trump administration, if elected, is causing uncertainty and concern among American whiskey producers. Scott Harris, founder and general manager of Catoctin Creek Distillery in Virginia, stated that the first round of Trump tariffs "killed our E.U. business dead" and that they have shifted their focus to other markets like the U.K., Australia, Mexico, and Taiwan. The uncertainty about tariffs moving forward makes it hard for distillers to plan for their future, and that lack of knowing echoes across the planet.

The IWSR, a leading data and analytics provider for the global beverage alcohol industry, reported that demand for American whiskey in the US is starting to soften due to downtrading and a cutback in innovation. This decline in domestic sales, coupled with the threat of a trade war, is creating a challenging environment for American whiskey producers. The industry must adapt and innovate to maintain their competitiveness in the face of these challenges.



In conclusion, the American whiskey industry is facing a double blow: a decline in domestic sales and the looming threat of a trade war. As the 2024 presidential election approaches, the industry is bracing for potential tariffs that could significantly impact their business, both domestically and internationally. The industry must adapt and innovate to maintain their competitiveness in the face of these challenges.