NEWS
INDIA SUCCUMBED TO TRUMP PRESSURE BY CUTTING BOURBON TARIFF TO 100%
By Siulan Law Mathews DipWSET
18-2-2025
Source: Whisky Exchange
India reduced its tariff on Bourbon whiskey from 150 percent to 100 percent, one day after US President Donald Trump criticised India's "unfair" tariffs on American goods, particularly in the alcohol sector.
The Indian government announced in a notification dated 13 February that the basic customs duty on Bourbon whiskey would now be set at 50 percent, with an additional 50 percent levy, totalling 100 percent.
This reduction only applies to Bourbon, with no changes to tariffs on other liquor products, that continue to be taxed at 150 percent.
The announcement was issued on the same day when Indian Prime Minister Narendra Modi met with President Trump in a visit to the US.
Also on that day, Trump signed off a memo that asked his staff to report back for a plan for reciprocal trade and tariffs for all countries within 180 days.
India’s Bourbon tariff cut will predominantly benefit American Bourbon producers, marking a significant shift in India's import duties on American goods.
The decision comes amid broader concerns from global businesses about the high import duties in India, especially in the USD35 billion spirits market.
Industry leaders from companies such as Diageo and Pernod Ricard have long argued that India’s steep taxes on foreign liquor hamper growth and trade.
Vinod Giri, director general of the Brewers Association of India, acknowledged that the tariff reduction on Bourbon was a strategic gesture, aimed at addressing US concerns and preventing any retaliatory measures.
India is one of the major importing countries of Bourbon whiskey, they country imported USD2.5 million worth of the liquor in 2023-24 financial year. Other major importing countries include the UAE (USD0.54m), Singapore (USD0.28m) and Italy (USD0.23m).
(the writer can be contacted at: info@thewinechronicle.com)
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