India Lowers Bourbon Whiskey Tariffs Amid U.S. Trade Pressure
India has reduced import tariffs on bourbon whiskey from 150% to 100%, a move expected to benefit American distillers and improve trade relations with the United States. The decision, effective February 13, 2025, follows criticism from former U.S. President Donald Trump over India's high trade barriers.
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Key Takeaways
India cuts bourbon whiskey tariffs from 150% to 100%, effective February 13, 2025.
American bourbon distillers anticipate growth in India’s $35 billion spirits market.
Scotch whisky tariffs remain unchanged as UK-India trade talks continue.
Tariff Reduction Details
Under the new policy, India's basic customs duty on bourbon has been cut to 50%, with an additional levy of 50%, resulting in a total tariff of 100%. While bourbon whiskey benefits from this change, tariffs on other imported liquors, including Scotch whisky, remain at 150%.
Impact on the Bourbon Industry
The U.S. bourbon industry sees this as a significant breakthrough. Chris Swonger, CEO of the Distilled Spirits Council of the United States, called it "a significant accomplishment" that opens doors to India’s $35 billion spirits market. Industry leaders anticipate increased American whiskey exports, benefiting brands such as Jim Beam and Maker’s Mark.
Geopolitical and Trade Context
The tariff reduction is part of broader trade discussions between India and the U.S. Trump previously labeled India the "tariff king" and pushed for reciprocal tariffs on countries with value-added tax systems. By lowering tariffs on bourbon, India may be signaling a willingness to address U.S. trade concerns and avoid potential retaliatory measures.
Response from Indian and Global Markets
Vinod Giri, director general of the Brewers Association of India, noted that decreasing the bourbon tariffs was an acknowledgment that import duties in alcohol are high and need to be reduced in line with other industries.
Meanwhile, the Scotch Whisky Association continues to lobby for similar tariff reductions through UK-India trade negotiations, aiming to expand market access for Scottish distillers.
Future Outlook On India & US Whiskey Trade Relations
India’s decision to adjust bourbon tariffs underscores the influence of global trade politics on the spirits industry. While American distillers stand to gain, other liquor producers continue to face high barriers. Further trade negotiations may determine whether similar reductions will extend to other whisky-producing nations.
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