Amid Trump's tariff threat, India cuts duty on bourbon whiskey, several other US-made products
The basic customs duty on bourbon whisky will be 50%, while an agricultural cess of 50% has also been imposed. Bourbon whisky accounts for as much as one-fourth or 25 per cent of all such liquor imports in India.
India has announced a slew of tariff reductions on imports from the US as President Trump pushed ahead with his reciprocal tariffs on several countries. The tariff reductions were announced on Thursday, ahead of Prime Minister Narendra Modi's meeting with the US president at the White House.
CREDIT: INSIDE HOOK
Duty on bourbon whisky reduced to 50 per cet
One of the most notable tariff reductions announced by India is on the US-made bourbon whisky to 100% from 150%. The basic customs duty on bourbon whisky will be 50%, while an agricultural cess of 50% has also been imposed.
Bourbon whisky accounts for as much as one-fourth or 25 per cent of all such liquor imports in India.
According to the Department of Revenue, all other imported alcoholic beverages will continue to attract 100 per cent import duty.
Duty on wines also reduced
In addition to bourbon, import duty on wines made of fresh grapes, and vermouth, as well as some other fermented beverages and unadulterated ethyl alcohol with 80% alcohol strength, have also been cut to 100%.
CREDIT: REUTERS
Other US imports to become cheaper
India has also lowered tariffs on US products, including motorcycles, ICT products and metals, as well as measures to enhance market access for US agricultural products, like alfalfa hay and duck meat, and medical devices.
Trump's tariff thereat
Trump has been using the threat of tariffs to reduce the trade deficit with countries that export more to the US than American imports. Trump has said that he will impose reciprocal tariffs on specific countries based on how much they charge on US imports.
CREDIT: REUTERS
Impact of reciprocal tariffs on India
Trump has been critical of India's import tariffs, claiming that the country charges more than any other US trade partner. According to Cousin's analysis, India charges US imports more than 10 percentage points higher than US levies on Indian goods.
Analysts feel that India is likely to be among the countries that would be most affected by the reciprocal tariffs. Food products, vegetables, textiles, and the clothing sector in India are the ones likely to be affected most by the reciprocal tariffs.
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Bobins Abraham is the Assistant News Editor at Indiatimes. He has more than twelve years of experience in TV and digital journalism. An avid student of history and geopolitics, he is a conservationist and environmentalist at heart. He writes on environment, sustainability, human-animal conflict and more.
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