India Lowers Tariffs on Bourbon Whisky Amidst US Trade Tensions

India has reduced tariffs on bourbon whisky from 150% to 100%, benefiting brands like Jim Beam. This follows criticism of India's trade practices by former U.S. President Donald Trump. While tariffs on bourbon have decreased, other liquors remain taxed at 150% in India's spirits market.

India has made a significant change to its tariff policy by reducing duties on bourbon whisky from 150% to 100%. The adjustment comes after the former U.S. President, Donald Trump, criticized the existing levies as "unfair" during discussions with Indian Prime Minister Narendra Modi.

The Indian government's tariff notification, dated February 13, initially went unnoticed but has now garnered significant media attention. According to the updated policy, the basic customs duty on bourbon whisky has been set at 50%, with an additional 50% levy, resulting in a total of 100% tariffs. This marks a considerable decrease from the former 150% tax rate, providing a potential boost to American whiskey brands in the Indian market.

Despite this change benefitting certain American spirits brands, other international liquor imports remain subject to a hefty 150% taxation. The decision highlights ongoing challenges in India's $35 billion spirits industry, where high taxes on imports have been a longstanding point of contention among foreign alcohol companies such as Diageo and Pernod Ricard.

(With inputs from agencies.)