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India has reduced its tariff on bourbon whiskey from 150% to 100%, a move expected to benefit popular US brands like Jim Beam. This change, announced on February 13 but gaining media attention on Friday, comes just a day after US President Donald Trump criticized India’s “unfair” tariffs, particularly on American alcohol imports.
Under the new structure, the basic customs duty on bourbon whiskey will be set at 50%, with an additional 50% levy, totaling 100%. Previously, bourbon faced a 150% tax. However, this tariff reduction only applies to bourbon, with no changes to taxes on other liquor products, which continue to be taxed at 150%.
This reduction in tariffs is seen as a positive development for US bourbon producers and represents a shift in India’s approach to import duties on American goods. Pratik Jain, a partner at PwC India, noted that the move signals India’s willingness to reconsider tariffs with key trade partners, particularly in the spirits sector.
The decision comes amid ongoing concerns from global businesses about India’s high import duties, especially in the $35 billion spirits market. Companies like Diageo and Pernod Ricard have long argued that steep taxes on foreign liquor hinder growth and trade in India.
Gill Bikram Singh