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Tennessee and Kentucky Distilled Spirits: What’s at Stake from a New Trade War?

Author

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  • Muhammad, Andrew
  • Menard, R. Jamey
  • Smith, S. Aaron

Abstract

American distilled spirits enjoy global popularity and are among the nation’s top agricultural exports. Despite disruptions from the 2018 trade war and the COVID-19 pandemic, exports have shown a steady upward trend, reaching almost $3.0 billion in 2024 (Figure 1). Tennessee and Kentucky lead the nation in distilled spirits exports, consistently ranking first and second, respectively, among exporting states. While distilled spirits make up approximately 2% of total agricultural exports nationwide, they dominate sales in both states, accounting for 36% of Tennessee’s and 48% of Kentucky’s agricultural exports in 2024. In that year, Tennessee exported over $900 million worth of distilled spirits, while Kentucky shipped around $750 million, together comprising more than half of the country’s total distilled spirits export revenue. Texas, the third-largest exporting state, exported around $350 million in distilled spirits in 2024 (USDA-FSA, 2025).

Suggested Citation

  • Muhammad, Andrew & Menard, R. Jamey & Smith, S. Aaron, 2025. "Tennessee and Kentucky Distilled Spirits: What’s at Stake from a New Trade War?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 36(4), June.
    • Handle: RePEc:ags:aaeach:358876
    DOI: 10.22004/ag.econ.358876
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