India has cut its tariff rate on bourbon imports from the US with immediate effect, coinciding with recent talks between President Donald Trump and Indian Prime Minister Narendra Modi.
The move, announced late last week, has seen the current rate of 150% drop to 100%, providing the American whiskey sub-category with an advantage over its spirits peers. Scotch whisky, for example, remains at 150%, a longstanding bugbear of scotch brand owners, who have been pressing for a reduction, particularly since the UK left the European Union in early 2020.
The revised rate for bourbon comprises 50% basic customs duty as well as an additional 50% levy. According to President Trump, the trade deficit between the two countries stands at “almost US$100bn”.
In a joint press conference in Washington on Friday, Prime Minister Modi suggested improved terms for US imports into India were on the horizon: “Our teams will work on concluding very soon a mutually-beneficial trade agreement (with the US),” he said.
The bourbon category’s trade associations welcomed the news, with the Distilled Spirits Council of the US (Discus) thanking the President for “his leadership in securing this historic reduction of India’s prohibitive tariff on Bourbon”.
Discus CEO Chris Swonger said: “This significant accomplishment opens opportunities for US distillers to increase their exports to the world’s largest whiskey market and bolster American manufacturing jobs. India’s 150% tariff on bourbon imports has severely restricted access to the Indian market for US spirits exporters for far too long. We thank President Trump and Prime Minister Modi for their collaboration.”
Similarly, the Kentucky Distillers’ Association framed the news as “a historic accomplishment”.
Last year, according to Discus, India was the 23rd largest export market for the American whiskey category, with shipments totalling $8.8bn.
Last week, the Scotch Whisky Association reiterated its wish for the UK to “accelerate trade talks to reduce tariffs and market access barriers in key markets, like India”. The call came with annual shipment figures for scotch in 2024, which saw India retain the top spot in volume, although the country was fifth-largest in value terms.
