India has reduced tariffs on Bourbon from 150% to 100%, a move expected to make the US whiskey more affordable for consumers.
The decision follows discussions between US President Donald Trump and Indian Prime Minister Narendra Modi at the White House last week.
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India’s tariff notification announced a 50% basic customs duty on Bourbon, in addition to a 50% levy, bringing the total tax to 100%.
However, there will be no changes to the duties on other liquor products, which remain taxed at 150%.
Chris Swonger, president and CEO of US trade body the Distilled Spirits Council of the US (DISCUS), welcomed the decision, calling it “historic”.
“This significant accomplishment opens opportunities for US distillers to increase their exports to the world’s largest whiskey market and bolster American manufacturing jobs,” Swonger said.
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By GlobalDataAccording to DISCUS, India ranked as the 23rd largest export market for American whiskeys in 2024, with exports totalling $8.8m.
DISCUS said India is the “largest whisk(e)y market by volume” but added India “imported less American whiskey than Singapore, New Zealand, and the United Arab Emirates”.
Last week, The Scotch Whisky Association said Scotch exports to India were worth £248m ($312.5m) in 2024, a rise of 13% year on year.
The prospect of changes to trade tariffs around the world is a headache across business, including the spirits industry.
Last month, Trump set out plans to levy a 25% tariff on all imports from Canada and Mexico into the US. The measures were subsequently put on hold for a month. However, a 10% US levy on Chinese imports has come into effect.
On Friday, the US president said he plans to issue a “reciprocal tariff” on all countries with which the country trades.
On his social-media site Truth Social, Trump said: “On trade, I have decided, for purposes of fairness, that I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them – No more, no less!
“For purposes of this United States policy, we will consider countries that use the VAT system, which is far more punitive than a tariff, to be similar to that of a tariff.”
