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.
Also read | 12 best bourbons and American whiskeys of 2025However, 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.Also read | 2.85 lakh 200 ml nips of Sanjay Dutt’s The Glenwalk Scotch whisky sold in 45 daysMeanwhile, the Confederation of Indian Alcoholic Beverage Companies
(CIABC) said on February 15 that Indian liquor manufacturers were not against reduction in import duty, though they have sought the import duty cuts in a phased manner.The CIABC has urged the Government to address concerns of Indian companies and ensure a level playing field in FTA negotiations and set in stringent effective measures to check and curb dumping of imported spirits and seeking better international access for Indian alcoholic products which face several non-tariff restrictions at present. The apex body of Indian alcoholic beverage manufacturers has requested atate governments to withdraw excise duty concessions given to imported liquor in view of reduction in customs duty.“The Government needs to safeguard the interests of Indian liquor manufacturers while deciding on issues related to customs duty cuts (BCD+AIDC) and other concessions under FTAs. Though we have already recommended to the government to cut cuts basic customs duty on spirits over a period of 10 years, we also want the government to ensure better international market access especially the Western countries and safeguard interests of Indian companies against any dumping of products thru transfer price mechanism at lower prices specifically for India, said Mr Anant S Iyer, DG, CIABC.(Edited by : Jerome Anthony)First Published: Feb 14, 2025 8:31 PM IST
