India has recently made a significant change to its import duties on bourbon whiskey. On February 13, the Indian government slashed the customs duty on bourbon whiskey to 50%, down from a steep 150 per cent.
This move comes just ahead of Prime Minister Narendra Modi's planned discussions with US President Donald Trump, adding some momentum to ongoing trade talks between the two countries.
It’s worth noting, though, that this reduced duty applies only to bourbon whiskey, with other types of liquor still subject to the usual 100% import duty.
Bourbon, specifically from the US, has been a popular import in India, accounting for about a quarter of all bourbon whiskey entering the country.
Last year, India imported bourbon whiskey worth around $2.5 million, with the US contributing $0.75 million of that total.
This move appears to be part of India’s broader efforts to strengthen trade ties with the US. The two countries have recently agreed to work towards more than doubling their two-way trade, aiming for $500 billion by 2030.
There are also plans for a bilateral trade agreement to reduce duties and improve market access for both sides.
Meanwhile, over in the European Union, the US’s imposition of tariffs on steel and aluminium has raised tensions. Ursula von der Leyen, the EU’s chief, has made it clear that the bloc will respond with countermeasures.
She argued that tariffs are harmful for both businesses and consumers and promised that the EU would take “firm and proportionate” actions if the US continues down this path. It’s shaping up to be a tricky few months ahead for international trade relations.
