Bourbon whiskey set to get cheaper in India? Govt announces tariff cuts for bourbon, set to benefit Jack Daniel's and Jim Beam

Bourbon whiskey: India has reduced import duties on American bourbon whiskey from 150% to 100%, making premium brands like Jack Daniel’s and Jim Beam more affordable for Indian consumers. The move comes amid ongoing trade discussions between India and the United States, as Prime Minister Narendra Modi engages with US President Donald Trump on strengthening bilateral economic ties.

A government notification dated February 13, 2025, confirms the revised tariff structure, which includes a 50% basic customs duty and an additional 50% levy. However, duties on other imported liquors remain unchanged.

This decision follows India's recent reduction of import duties on high-capacity motorcycles during the Union Budget 2025. The earlier policy change saw tariffs on completely built-up (CBU) motorcycles above 1600cc cut from 50% to 30%, while duties on semi-knocked down (SKD) and completely knocked down (CKD) units were also lowered. That move was widely interpreted as a response to Trump’s persistent criticism of India’s high tariffs, with the US President having previously called India a "tremendous tariff maker."

The lowering of tariffs on motorcycles is believed to benefit American automobile giant Harley-Davidson the most.

As part of their ongoing trade discussions, Modi and Trump have set an ambitious $500 billion bilateral trade target by 2030. Trump hinted at further trade announcements, stating, “We are working on separate, big trade deals for India and the US. Some wonderful trade announcements will be made very soon.”

India’s $35 billion spirits market has long faced calls for tariff reforms from global liquor giants, while premium motorcycle manufacturers had also been lobbying for greater market access. With these recent changes, India signals a more flexible approach to trade, potentially paving the way for further negotiations with the US.

These moves at tariff reduction also comes amidst fierce criticism from President Trump. During the first bilateral meeting between PM Modi and Trump, the latter took pot shots at India's tariff structure, saying that it was difficult to do business with the country. Trump then spoke about introducing reciprocal tariffs to punish those countries who have high entry barrier for American goods.