 "The Donald Trump administration has repeatedly taken aim at India over tariffs. AP")
Donald Trump wants India to drink American booze.
America’s bourbon whisky, to be specific.
A spokesperson for US President Donald Trump has singled out India’s tariffs on American alcohol.
This despite India bringing down the duty on American bourbon before Prime Minister Narendra Modi’s US visit.
But what happened? Why does it matter?
Let’s take a closer look:
What happened?
The US has yet again taken aim at India’s tariffs on its goods – particularly alcohol and agriculture.
White House Press Secretary Karoline Leavitt on Tuesday, answering a question on Canada during a press briefing, slammed India.
“You look at India, 150 per cent tariff on American alcohol. Do you think that’s helping Kentucky bourbon be exported into India? I don’t think so. 100 per cent tariff on agricultural products from India,” Leavitt said.
The development comes after Trump last week slammed India’s “high tariffs ” claiming it is “next to impossible to sell anything to India.”
Trump claimed that India has agreed to slash its tariffs significantly, allegedly because “somebody is finally exposing them for what they have done.”
“India charges us massive tariffs . Massive. You can’t even sell anything in India…They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done.”
As per The Times of India, New Delhi had slashed duty on American bourbon from 150 per cent to 100 per cent just before Prime Minister Narendra Modi’s visit to the US.
The criticism comes despite India being a tiny market for US liquor.
As per The Times of India, India makes up just $2.2 billion of the $3 trillion US liquor exports overall.
In fact, it is Europe that is the big buyer of US alcohol.
So, why the outrage?
Why does it matter?
Because, as they say, all politics is local.
Trump may be keeping in mind domestic considerations.
Kentucky, a solidly red state that voted for Trump in 2016, 2020 and 2024 that is famed for making bourbon whiskey, is eyeing increasing the market in India – which is a big consumer of whiskey.
As per NDTV, bourbon has been recognised by US Congress as a “distinctive product of the United States.”
The biggest bourbon manufacturers in the US are based in Kentucky and Tennessee.
As per NDTV, American bourbon comprises around a fourth of all India’s liquor exports.
In 2023-24, India imported bourbon worth $2.5 million.
Jack Daniel’s, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack, and Old Forester are all popular in India.
Hindustan Times quoted Vinod Giri, director general of the Brewers Association of India, as saying India’s tariff cut on bourbon was mostly strategic.
“Tariffs on bourbons, like motorbikes, have high optics value,” Giri said.
Kentucky’s Republican lawmakers have hailed Trump’s push to have India lower tariffs on bourbon.
“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, was quoted as saying by The Times of India.
But the White House seemingly wants more.
Incidentally, Governor Andy Bashear, a Democrat, defeated Trump-backed Republican state Attorney General Daniel Cameron in Kentucky in 2023.
Leavitt hits Canada
Leavitt also slammed Canada .
“Canada has been ripping off the United States of America and hard-working Americans for decades. If you look at the rates of tariffs across the board that Canadians have been imposing on the American people and our workers here, it is egregious. In fact, I have a handy dandy chart here that shows not just Canada, but the rate of tariffs across the board. If you look at American cheese and butter, nearly 300 per cent tariff,” she added.
Leavitt held up a chart that showed tariffs charged by India, Canada and Japan. On the chart, two circles with the colors of the tri-colour highlighted the tariffs that India imposes.
“President (Donald) 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, and all he’s asking for at the end of the day are fair and balanced trade practices, and unfortunately, Canada has not been treating us very fairly at all over the past several decades,” she said.
With inputs from agencies