India cuts bourbon whisky import duty to 100% after Trump's criticism

New Delhi (The Uttam Hindu): India has reduced tariffs on bourbon whisky from 150% to 100% a move likely driven by political and economic pressures after US President Donald Trump criticized the country's "unfair" tariffs on American products. Announced on February 13 the new tariff structure includes a 50% basic customs duty plus an additional 50% levy on bourbon imports. This change benefits US brands like Jim Beam (Suntory) which have faced high taxes in India.

The adjustment applies only to bourbon with other liquor imports remaining taxed at 150%. The move signals India's openness to revising trade policies particularly with strategic partners like the US. Pratik Jain from PwC India highlighted that this decision reflects a broader willingness to explore changes in tariff structures for economic integration.

The reduced tariff could also impact competition in India’s $35 billion spirits market where companies like Diageo and Pernod Ricard operate. Vinod Giri of the Brewers Association of India suggested that the reduction is intended to reassure the US and pre-empt any retaliatory measures. The tariff cut underscores India’s recognition that high import duties on alcohol may be misaligned with global norms as the country seeks to deepen its integration into the global economy.

This development may signal further tariff adjustments as India continues to balance its trade relationships with major global partners aiming to strengthen its position on the world stage.