Lexington, KY—Today, U.S. Congressman Andy Barr (R-KY), co-Chair of the Congressional Bourbon Caucus and Vice-Chair of the Congressional India Caucus, released the following statement after the U.S.-India trade framework announcement included an elimination or reduction in tariffs from India on U.S. spirits:
“Unfettered access to a top five economic market will be a boom for our Kentucky bourbon businesses,” said Congressman Barr. “President Donald Trump has delivered for bourbon before—by cutting taxes, leveling the playing field for distillers, and standing up for American-made products. Today, I join Kentucky distillers in toasting to the President once again for securing access to a major new market for our signature bourbon industry.”
“Reducing India’s tariffs on American whiskey—particularly native spirits from Kentucky, including world-class bourbon and rye—is a meaningful step forward for U.S. distillers, farmers, and the broader supply chain that supports this iconic American product. Representative Andy Barr has been a consistent and effective advocate for American whiskey, and we appreciate his continued leadership and engagement on trade policies that expand market access and strengthen U.S. exports. Progress like this underscores the importance of sustained, bipartisan advocacy to ensure American whiskey can compete on a level global playing field,” said Michael Bilello, President and CEO, American Whiskey Association.
The Distilled Spirits Council also released a statement after the framework was announced, “Last year’s tariff reduction on U.S. spirits imports to India was an important first step that opened new opportunities for Bourbon producers in the world’s largest whiskey market. With India now reaching agreements with the EU and the UK to significantly reduce tariffs on their spirits, we are hopeful that this new U.S.–India agreement will secure comparable tariff reductions across all categories of U.S. distilled spirits, ensuring fair and competitive access to the Indian marketplace.”
India lowered their tariff on American bourbon products from 150% to 100% in February of 2025, after negotiations led by President Trump. In his first term, President Trump signed the Craft Beverage Modernization and Tax Reform Act (CBMTRA) into law, which was championed by Congressman Barr. This law created a level playing field for bourbon distillers, allowing them to deduct interest expenses associated with production in the year it is paid, not when the bourbon is bottled and sold. It also lowered the Federal Excise Tax (FET) rates for distillers and aged spirits.
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