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India slashes bourbon whisky tariffs amid intensifying Trump criticism
Trump has railed against the climate for American businesses in India and unveiled a roadmap for reciprocal tariffs on countries that put duties on U.S. imports.
A bartender uses his phone while liquor bottles are displayed at a bar in Gurugram, India, November 26, 2024. / Reuters/Priyanshu Singh
India has slashed tariffs on bourbon whisky to 100 percent from 150 percent, a move that will benefit imports of brands like Suntory's Jim Beam, after U.S. President Donald Trump's criticised "unfair" levies in the South Asian market.
Trump, who met Indian Prime Minister Narendra Modi at the White House this week, has railed against the climate for American businesses in India and unveiled a roadmap for reciprocal tariffs on countries that put duties on U.S. imports.
The tariff notification by the Indian government was dated Feb. 13 but gathered media attention only on Feb.14. It said the basic customs duty on bourbon will be 50 percent, with an additional levy of 50 percent, bringing the total to 100 percent.
Previously, such imports were taxed at 150 percent.
There will be no change on imports of other liquor products, which are also taxed at 150 percent.
The move would primarily benefit imports from the United States, said Pratik Jain, a partner at PwC India. "It signals that the Indian government is willing to explore changes in tariff items for strategic partner countries," he added.
Many foreign liquor companies such as Diageo and Pernod Ricard operate in India's $35 billion spirits market, and industry executives have often criticized India's high tariff regime for such imports.
Vinod Giri, director general at Brewers Association of India, said tariffs on bourbons, like motorbikes, had high optics value, adding the move was designed to reassure the U.S. of India's intent and to pre-empt any retaliatory action.
"As India seeks to integrate into global economy, there is an increasing acknowledgment that the import duties in India on alcohol are high and need be reduced in line with other duties," he said.
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