India cuts tariff on American burbons from 150% to 100%

In some good news for connoisseurs of bourbon whiskies, India has slashed tariffs on bourbon whisky amid intensifying criticism from Trump. The move will benefit brands like Suntory’s Jim Beam, following criticism from US President Donald Trump over what he called “unfair” trade levies in the country.

Trump, who met with Indian Prime Minister Narendra Modi at the White House earlier this week, has been vocal about the challenges facing American businesses in India. He introduced a proposal for reciprocal tariffs on countries that impose duties on American goods.

The Indian government issued the tariff adjustment notification on February 13, which only gained widespread attention on Friday. The new structure will impose a basic customs duty of 50% on bourbon, along with an additional 50% levy, making the total tariff 100%. Prior to this change, imports faced a 150% tariff.

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However, the revised tariff applies exclusively to bourbon whiskies, which are made and aged in America, but other alcoholic products continue to be taxed at the previous rate of 150%.

International liquor giants such as Diageo and Pernod Ricard have a strong presence in India’s $35 billion spirits market, and many industry leaders have frequently voiced concerns about the country’s high tax rates on foreign liquor.

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