India lowers tariffs on US bourbon imports amid trade talks
INDIA – India has reduced its tariff on bourbon imports from the United States, cutting the rate from 150 to 100 percent with immediate effect.
The move aligns with ongoing trade discussions between US President Donald Trump and Indian Prime Minister Narendra Modi.
The new tariff structure includes a 50 percent basic customs duty and an additional 50 percent levy. The reduction gives American whiskey a competitive edge over other imported spirits, such as Scotch whisky, which remains subject to the 150 percent tariff.
The Scotch Whisky Association (SWA) has long called for a reduction, particularly following the UK’s exit from the European Union in 2020.
Speaking at a joint press conference, Prime Minister Modi hinted at further trade improvements between the two nations. “Our teams will work on concluding very soon a mutually beneficial trade agreement (with the US),” he stated.
Chris Swonger, CEO of the Distilled Spirits Council of the US (Discus), welcomed the tariff reduction, describing it as a breakthrough for American whiskey producers.
“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 percent tariff on bourbon imports has severely restricted access to the Indian market for US spirits exporters for far too long,” he said.
India is a key market for global whiskey producers. According to Discus, the country ranked as the 23rd largest export market for American whiskey in 2023, with shipments valued at $8.8 billion.
The Scotch Whisky Association has also expressed its desire for the UK to accelerate trade negotiations with India to improve market access for Scotch producers.
Recent data from the SWA shows that Scotch whisky exports increased by nearly 4 percent in volume in 2024, though export value declined by the same percentage.
India reclaimed its position as the largest export market for Scotch by volume, overtaking France, with shipments reaching 192 million 70cl bottles—an increase of 14.6 percent year-on-year.
Meanwhile, Japan recorded a 22.9% rise in Scotch whisky imports, reinforcing its position as the fourth-largest market. China saw a slight decline in volumes to 30 million bottles, though its export value fell more significantly.
Despite a marginal 0.8 percent decline in value to GBP971 million (US$1.22B) in 2024, the United States remains the top market for Scotch whisky exports.
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