India Reduces Customs Duty on Bourbon Whiskey to 50%

In a significant move aimed at strengthening trade ties with the United States, India has lowered customs duties on imported bourbon whiskey. The revised tariff, which took effect on February 13, 2025, brings the total duty down from 150% to 100%, comprising a basic customs duty of 50% along with an additional levy of 50%.

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Addressing U.S. Concerns on High Tariffs

This policy shift comes amid concerns raised by U.S. officials, including President Donald Trump, regarding India’s high import duties on American products. The reduction is expected to enhance the market presence of leading American bourbon brands, such as Jim Beam, making them more competitive in India.

While the duty cut is specifically for bourbon whiskey, other imported spirits will continue to face the existing 150% tariff. The U.S. is currently the largest supplier of bourbon whiskey to India, accounting for roughly 25% of the country’s total bourbon imports.

Strengthening Bilateral Trade Relations

Trade experts view this move as part of India’s broader strategy to address U.S. concerns and foster stronger economic ties. Vinod Giri, Director General of the Brewers Association of India, pointed out that India is gradually aligning its import duties with global standards. This step is seen as a proactive measure to avoid potential trade disputes and reassure American exporters.

The reduction in bourbon whiskey tariffs is also aligned with India and the U.S.’s shared goal of expanding bilateral trade, with an ambitious target of reaching USD 500 billion by 2030. By easing trade restrictions on select imports, India aims to create a more favorable environment for American businesses while boosting domestic demand for premium spirits.

Conclusion

India’s decision to cut bourbon whiskey import duties reflects its commitment to improving trade relations with the U.S. and addressing concerns over tariff barriers. The move is expected to benefit both American whiskey exporters and Indian consumers, paving the way for increased collaboration in the global spirits market.

India Reduces Customs Duty on Bourbon Whiskey to 50%

Addressing U.S. Concerns on High Tariffs

Strengthening Bilateral Trade Relations

Conclusion

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