India has slashed tariffs on bourbon whisky from 150 per cent to 100 per cent. The development follows Prime Minister Narendra Modi’s bilateral meeting with US President Donald Trump amid his criticism of “unfair” trade tariffs in the South Asian market.
The announcement was made before the meeting, as the notification on tariffs was dated 13 February, but it gained media attention later.
The move is likely to benefit imports of US-based brands like Suntory’s Jim Beam.
The Department of Revenue announced on 13 February that customs duty on bourbon whisky has been reduced from 150% to 50%. However, all other imported alcoholic drinks will still be subject to a 100% duty.
The move will mainly benefit imports from the US, said Pratik Jain, a partner at PwC India. He said it shows India’s willingness to adjust tariffs for key partner countries.
This decision is seen as India’s effort to address President Trump’s concerns about high tariff barriers and to strengthen trade relations between the two countries. Industry experts believe it signals India’s willingness to adjust tariffs for strategic partners.
President Trump has proposed “reciprocal” tariffs, which aim to match the import duties that other countries impose on US goods. For instance, India’s average applied Most Favoured Nation (MFN) tariff on agricultural goods is 39 per cent, significantly higher than the US average of 5 per cent.
Trump has implemented a series of tariffs to address trade imbalances and protect US industries. These measures include a 25 per cent tariff on steel and aluminium imports and a 10 per cent tariff on imports from China.
With inputs from Reuters
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India cuts import duty on bourbon whisky to 100% amid Trump’s ‘reciprocal’ tariff threats
