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India tariff cut to boost Bourbon exports
The Kentucky Distillers’ Association (KDA) has praised the new US-India deal to lower tariffs on Bourbon, which will open the world’s largest whisky market to the category and accelerate exports.
On Friday (14 February), talks between US president Donald Trump and Indian prime minister Narendra Modi resulted in the immediate reduction of India’s import tariff on Bourbon from 150% to 100%.
The move has been praised by American trade bodies including the Distilled Spirits Council of the US (Discus) and the KDA.
KDA president Eric Gregory called the new agreement a “historic achievement”.
“We have seen worldwide, when trade restrictions are eased, that the elegance and complexity of Kentucky Bourbon attracts discerning palates of connoisseurs and new drinkers alike,” he continued.
Gregory also voiced his gratitude to Trump and Modi for challenging the “long-standing prohibitive tariff” and building a “more favourable path towards progress for Kentucky Bourbon”.
India is Kentucky’s 14th-largest export market with US$3m in whiskey shipped annually. This is expected to accelerate with the tariff reduction, the KDA highlighted.
Gregory believes this deal will “unlock more avenues for Kentucky’s distillers to grow and tackle headwinds that are charging towards the industry”.
Chris Swonger, president and CEO of Discus, said the 150% tariff had “severely restricted access to the Indian market for US spirits exporters for far too long” and believes the reduction will “bolster American manufacturing jobs”.
‘More accessible’
The move to slash the Bourbon tariff was also helped by the efforts of Kentucky congressman Andy Barr, Gregory added.
Barr had recently met with US commerce secretary Howard Lutnick and the ambassador of India to the US, Vinay Kwatra, to advocate for greater market access for Bourbon in India.
“Thoughtful agreements like this will help protect Kentucky jobs and bring a taste of our state to more communities across the globe,” Barr noted.
“America’s distinct spirit will now be more accessible in a market that will open doors for our state’s signature Bourbon industry.”
The KDA said Kentucky is the birthplace of Bourbon, producing 95% of the world’s supply.
The industry is described as a US$9 billion economic and tourism powerhouse, generating more than 23,100 jobs with US$2.2bn in salaries and benefits. It also attracts more than 2.5m visitors annually to the Kentucky Bourbon Trail.
The state is also home to 15.4m barrels of whiskey – three times more than the number of residents at 4.5m.
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