TOI Correspondent from Washington: Considering both US President Donald Trump and Prime Minister Narendra Modi are teetotalers, it may not be in the spirit of things to make booze part of the trade dispute between the two countries. But the Trump White House on Tuesday flagged New Delhi’s tariffs on American bourbon, accounting for a pittance of overall US exports, as a contentious issue at a time the World Health Organisation (WHO) has said no level of alcohol consumption is safe for health.
Ignoring India’s lowering of duty on American bourbon from 150 percent to 100 percent just before Modi’s February 13 visit to Washington, Trump’s spokesperson Karoline Leavitt insisted on Tuesday that India’s 150 per cent tariff on American alcohol is unhelpful, even as the US President was outside promoting Tesla, which is also making inroads into India much to his disapproval of a prospective manufacturing facility there.
“Look at India, 150 per cent tariff on American alcohol. Do you think that’s helping Kentucky Bourbon be exported to India? I don’t think so,” Leavitt raged at the WH press briefing, pulling out what she called a “handy-dandy chart” of tariffs imposed by various countries on American products.
“President Trump believes in reciprocity and it is about dang time that we have a president who actually looks out for the interests of American businesses and workers,” Leavitt fumed, even as Trump’s erratic tariff policy that changes by the day has caused turmoil in global markets.
Leavitt also seemed not to take note of India’s well-publicised lowering of tariffs on bourbon from 150 percent to 50 percent, with an additional tax of 50 percent, bringing down the overall duty to 100 percent. Much of the grandstanding appeared to involve domestic politics where Kentucky, the fount of American bourbon and a solid red Republican state, has a Democratic governor who defeated a Trump-endorsed candidate in the 2023 gubernatorial elections.
India is a pitifully small market in the mini-millions for American spirits, which itself accounts for only around $2.2 billion — of about $ 3 trillion overall US global exports — with Europe being the major market for American alcohol. American Whiskeys account for 63 percent of all U.S. spirits exports, reaching $1.4 billion in 2023.
But renowned for its fried chicken, the Kentucky wants to supplement it with bourbon to India, a whisky-loving country that is famously said to drink more scotch than is manufactured in Scotland, mainly domestic knock-offs. Kentucky’s Republican lawmakers eager to advance the state’s economy and keep it solidly red have taken note of India’s lowering of duties on bourbon but that’s inadequate for the White House.
“Big win for Kentucky’s signature bourbon industry! Due to President Trump’s leadership, India is cutting tariffs on bourbon by 50%, expanding the global marketplace for our distillers. I met with Treasury Secretary Bessent and incoming-Commerce Secretary Lutnick to ensure America’s signature spirit is treated fairly in all corners of the world,” Andy Barr, a GOP congressman from the state said recently.
But for a White House intoxicated with the prospect of making America richer, that’s not enough. It wants India to drink more, never mind the WHO advisory alcohol is a Group 1 carcinogen which also includes asbestos, radiation and tobacco.
