India has lowered import duties on bourbon whiskey to 100% from the earlier 150%, a decision expected to boost American brands like Jim Beam, produced by Suntory. This reduction follows criticism from former US President Donald Trump, who previously called the tariffs in India unfair.

Trump, during his recent meeting with Indian Prime Minister Narendra Modi at the White House, voiced concerns about the challenges faced by American businesses in India. He also announced plans for reciprocal tariffs targeting nations that impose heavy duties on US goods.

India's revised tariff structure was formalized on February 13, but it only caught widespread attention later in the week. According to the notification, the base customs duty on bourbon whiskey is now set at 50%, with an additional levy of another 50%, bringing the effective tariff to 100%. This marks a reduction from the previous rate of 150%.

Duties on other alcoholic beverages remain unchanged, still standing at 150%.

Tax experts see this change as particularly favorable to American imports. Pratik Jain, a partner at PwC India, noted that the adjustment suggests India is open to reviewing tariffs for countries considered strategic partners.

India’s $35 billion spirits market is home to major global players such as Diageo and Pernod Ricard. However, foreign alcohol producers have often criticized India’s steep import duties, which they claim hinder business growth.

Vinod Giri, Director General of the Brewers Association of India, said bourbon tariffs held symbolic significance, much like the duties on motorcycles. He viewed the reduction as a signal of India's commitment to easing trade tensions with the US and avoiding potential retaliatory measures.

Giri added that as India looks to expand its role in the global economy, there is growing recognition that high import taxes on alcoholic beverages need to align more closely with broader tariff reforms.