India Cuts Tariff on US Bourbon Whiskey from 150% to 100% Following Trump’s Criticism

NEW DELHI: India has reduced its tariff on bourbon whiskey from 150% to 100%, a move that is expected to benefit imports of popular US brands like Suntory's Jim Beam. This change comes a day after US President Donald Trump criticized India's "unfair" tariffs on American goods, particularly in the alcohol sector.

In a notification dated February 13 but only drawing media attention on Friday, the Centre announced that the basic customs duty on bourbon whiskey would now be set at 50%, with an additional 50% levy, totaling 100%. Previously, these imports faced a hefty 150% tax. However, this reduction only applies to bourbon, with no changes to tariffs on other liquor products, which continue to be taxed at 150%.

This tariff cut will predominantly benefit US bourbon producers, marking a significant shift in India's import duties on American goods. Pratik Jain, a partner at PwC India, noted that the move signals India’s openness to revising tariffs with its strategic partner countries, particularly in sectors like spirits.

The decision comes amid broader concerns from global businesses about the high import duties in India, especially in the $35 billion spirits market. 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.

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