Both India and the United States are raising a glass today.
India has agreed to lower its tariffs on bourbon imports from 150 percent to 100 percent, following Indian Prime Minister Narendra Modi’s visit to the U.S. India is the largest whiskey market in the world, but the country was just the 23rd largest export market for American whiskey last year.
“This significant accomplishment opens opportunities for U.S. 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 U.S. spirits exporters for far too long,” Chris Swonger, the president and CEO of the Distilled Spirits Council of the United States, said in a statement.
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Since 2023, DISCUS has worked with the U.S. Department of Agriculture to promote American whiskey and other spirits in India. Last year, that resulted in $8.8 million in American whiskey exports to the country. Still, exports to India were less than what was sent to countries including Singapore, New Zealand, and the United Arab Emirates.
The bourbon news is likely welcome for producers stateside, especially because Donald Trump’s proposed tariffs have been expected to hurt U.S. labels around the world. Even before he was elected president, the whiskey industry was bracing for the negative effects of such tariffs. And this month, countries have been threatening to stop selling American alcohol if certain tariffs go into effect: Ontario, which imports some $1 billion of American booze every year, said so just a couple weeks ago.
And while India may be softening its stance toward bourbon, other countries may not be enacting such favorable policies. With the U.S. recently placing a 25 percent tariff on steel and aluminum imports, the European Union and other entities may retaliate with a 50 percent tariff on American whiskey. So while those in India may be throwing back more bourbon than ever, Europeans and others might soon be cutting back on the liquid.
