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Sameer Mahandru Explains US Alcohol Duty Cut Impact


US President Donald Trump’s new tariff policies are having a big impact on the global alcohol and beverage (AlcoBev) industry. These tariffs are part of a larger plan to fix trade imbalances, with the US placing equal tariffs on several countries, including India.


In India, the import duty on alcoholic drinks is quite high. As of 2025, most imported alcohol like wine, vermouth, and other spirits face a 100% customs duty. However, there’s one exception — Bourbon whiskey, which now has a reduced duty of 50%.

Sameer Mahandru explains, “These tariffs support India’s ‘Make in India’ initiative, which aims to protect local alcohol manufacturers by making imported drinks more expensive. This helps prevent cheaper foreign alcohol from hurting Indian brands. At the same time, lowering the duty on bourbon shows that India is open to making smart trade deals. But overall, high tariffs still make it difficult for foreign liquor companies to enter India’s huge and growing alcohol market.

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