India Slashes Bourbon Whiskey Tariff from 150% to 100% After Trump’s Remarks

India has announced an immediate reduction in its import tariff on Bourbon whiskey, lowering it from 150% to 100%. The move comes after discussions between US President Donald Trump and Indian Prime Minister Narendra Modi at the White House.

In 2024, India ranked as the 23rd largest export market for American whiskey, with US whiskey exports to India amounting to $8.8 million last year.

The Distilled Spirits Council of the US (Discus) welcomed the tariff cut, calling it a significant step for American distillers.

Chris Swonger, president and CEO of Discus, praised Trump's leadership in securing the reduction, stating, "This historic decision opens new opportunities for US distillers to expand exports to the world's largest whiskey market and strengthen American manufacturing jobs."

He further noted that India's high tariffs had long restricted US spirits exporters, adding, "We appreciate President Trump and Prime Minister Modi's collaboration. Let's make American whiskey great in India."

Discus, in collaboration with the US Department of Agriculture, has been actively promoting American whiskey in India since 2023, aiming to educate importers and the media about its distinct qualities.

Tariffs have been a major point of contention in the spirits industry since Trump's return to the White House. Before his reinstatement, he had pledged to impose 25% tariffs on imports from Canada and Mexico, affecting spirits such as Canadian whisky, Tequila, and mezcal.

Last week, Trump reaffirmed his plans but reversed his decision within 24 hours, postponing the tariffs until March 4.

The delay followed negotiations with Mexican President Claudia Sheinbaum, who agreed to deploy troops along the northern border in exchange for US cooperation in limiting the flow of firearms into Mexico. Similarly, discussions with Canadian Prime Minister Justin Trudeau led to an agreement to strengthen border security and combat fentanyl trafficking into the US.