USA: American Whiskey Industry Demands Fairer Global Trade Conditions

The American Whiskey Association (AWA) has called on the Office of the United States Trade Representative (USTR) to address tariffs, discriminatory taxation and regulatory restrictions affecting American whiskey exports in 17 international markets. In a submission dated November 10, 2026, prepared for the 2027 National Trade Estimate Report on Foreign Trade Barriers, the association urged the US government to make market access for American whiskey a priority in international trade negotiations.

The initiative comes at a difficult time for the American spirits industry. Slowing domestic consumption, rising inventories and pressure on distillery production have increased the importance of international sales. However, trade disputes and protectionist measures in several major markets are making it increasingly difficult for US producers to compensate for weaker demand at home.

Among the association's principal objectives are the preservation of tariff-free trade with the European Union and the United Kingdom, lower import duties in India and the removal of restrictions affecting American spirits in Canada. These markets are particularly important because they combine established demand for premium whiskey with opportunities for further growth.

Canada has become an especially sensitive issue following the escalation of trade tensions between Washington and Ottawa. Several Canadian provinces removed American alcoholic beverages from government-controlled retail channels in response to US tariff measures, effectively cutting off access to important distribution networks (inside.beer, 03.02.2025). Unlike ordinary import duties, such retail restrictions can prevent consumers from purchasing American whiskey even when products remain legally importable.

India represents a different challenge. Although its large population and expanding middle class offer substantial long-term opportunities for imported premium spirits, high import duties and additional taxation continue to restrict the competitiveness of American whiskey. Reducing these barriers could open opportunities for bourbon and other US whiskey categories, particularly in the premium segment.

The association is also seeking stronger international recognition of American whiskey production standards and legally protected product designations. These measures are intended to prevent misleading labeling, protect the identity of established whiskey categories and ensure that products marketed as American whiskey meet the applicable requirements.

The urgency of expanding exports is illustrated by the production adjustments already taking place in the United States. Jim Beam, one of the world's best-known bourbon brands, has faced inventory pressures that have led to a suspension of bourbon production at its main distillery (inside.beer, 22.12.2025). Such developments highlight the industry's challenge of balancing production capacity with slower sales growth and substantial stocks of aging whiskey.

According to figures from the Distilled Spirits Council of the United States (DISCUS), American whiskey generated approximately USD 1.3 billion in export revenues in 2024, accounting for 54% of the total value of US spirits exports. The category includes bourbon, Tennessee whiskey, American rye and American single malt. Its international importance extends beyond the distilling industry to grain farmers, barrel manufacturers, packaging suppliers and logistics companies.

 AWA President and Chief Executive Officer Michael Bilello, who assumed the position in September 2025, stressed that predictable trading conditions are essential for American producers. He argued that tariffs, discriminatory regulations and other obstacles undermine their ability to compete internationally, even when consumer demand for their products exists.

Established in 2025, the AWA brings together major international spirits producers, including Brown-Forman, Campari Group, Diageo, Pernod Ricard, Sazerac and Suntory Global Spirits. The association represents the interests of whiskey producers and related businesses across all 50 US states. It works alongside DISCUS, the American Distilled Spirits Alliance (ADSA) and international industry partners to coordinate trade policy initiatives.

The association's submission also highlights the importance of removing non-tariff barriers, including complicated certification procedures, labeling requirements, customs regulations and restrictions on advertising and promotion. Such measures can increase distribution costs and create particular difficulties for smaller distilleries seeking to enter foreign markets for the first time. In India, the association specifically wants market access to cover bulk whiskey shipments as well as bottled products.

 The demands now form part of the consultation process for the US government's 2027 trade barriers report. Although the submission does not itself change existing trade arrangements, it could influence future negotiations and enforcement priorities. Whether improved export opportunities can offset the industry's domestic difficulties will depend not only on the removal of trade barriers but also on consumer demand, exchange rates and competitive conditions in individual markets.

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