The import tariffs for Bourbons have been reduced to 100% for bottled products, while bulk imports and other segments still attracting 150% duty structure. In a conversation with Trilok and Bhavya Desai, Chris Swonger, President & CEO, Distilled Spirits Council of the United States (DISCUS) speaks about the evolving dynamics between American and Indian alcobev markets, the impact of tariff reductions and the growing global appetite for premium spirits. Excerpts:

Trilok Desai (TD): The tariff on American whiskey has recently been reduced under the new trade framework. How significant is this change for U.S. distillers looking to expand in one of the world’s biggest whiskey markets?

The excitement is immense. With the Prime Minister and the President working together to reduce the tariff on bottled bourbon from 150% to 100%, it marks a major milestone. Of course, 100% is still high, but it’s a strong start. This creates real opportunities—we’ve seen in other markets that when tariffs drop to zero, both sides benefit. We believe this move opens the door for significant growth and stronger US–India trade relations.

The ultimate goal is to eventually move toward zero-for-zero tariffs, though that might take time—perhaps a decade. But it’s a step in the right direction. Both Indian and American consumers will gain from this exchange of distinctive products and cultures.

Bhavya Desai (BD): Have there been any further discussions between DISCUS, the U.S. government and the Indian government regarding further tariff reductions?

Yes, absolutely. We are in regular communication with the administration, the U.S. Trade Representative and the Department of Commerce. They are well aware of our aspirations. For context, between 1997 and 2018, the U.S. and EU maintained zero-for-zero tariffs, and trade in spirits grew by over 450%. That’s the kind of growth we hope to replicate between India and the U.S.

TD: Traditionally, India has been a Scotch-dominated market. How do you plan to position and expand American whiskey against such strong competition?

We work closely with the Scotch Whisky Association, and there’s no rivalry between us—in fact, our relationship is collaborative. My counterpart, Mark Kent, and I share the belief that standards matter—whether it’s American whiskey, Scotch or Indian whisky. All the economic data shows that when tariffs are reduced, every side benefits.

BD: How do you plan to raise awareness for bourbon in India? Scotch and Indian whiskies are already well established, but bourbon still feels relatively new here?

It’s really about bottle by bottle, sip by sip. The more Indian consumers get to experience American whiskey, the more they’ll appreciate its diversity and craftsmanship.

And awareness starts with accessibility. The recent tariff reduction is an encouraging first step, because it encourages American distillers to invest in this market. We’ve seen six leading American distillers participate at the recent exhibition, showcasing everything from bourbon and rye whiskey to Tennessee and American single malt.

TD: But India is a price-sensitive market and bourbon tends to be more expensive than Scotch—atleast the current ones?

That’s true, largely due to tariffs and import costs. However, premiumisation is an important global trend. Consumers here increasingly seek quality and authenticity. For those who want to experience something distinctive, American whiskey is worth it.

TD: Are American distillers exploring the possibility of bottling in India, like some Scotch producers do?

Some are certainly exploring that. A few already have arrangements to bottle locally or import in bulk. It’s an evolving opportunity, and companies are evaluating how best to bring their products closer to Indian consumers.

BD: Beyond tariff reductions, what other near-term goals does DISCUS have for the coming year?

Education—that’s our top priority. From bartenders and mixologists to retail professionals, we want to build understanding about American whiskey: its heritage, its role in classic cocktails, and its versatility.

American whiskey has a proud history—even George Washington was a distiller. Educating both the trade and consumers about this legacy will be essential to our long-term success.

BD: With ongoing trade tensions between India and the U.S., do you see these issues posing a challenge to your efforts in the alcobev space?

While there are certainly broader geopolitical challenges, we remain optimistic. The relationship between both governments is constructive, and recent dialogues have been encouraging. We’re confident that continued collaboration will bring positive results.

The key is recognising that our industry is interconnected. American whiskey can only be made in the U.S., Scotch in Scotland, and Indian whisky in India. We’re not competitors—we’re collaborators in a shared global culture of spirits.

TD: How is Indian whiskey perceived in the United States?

There’s a tremendous opportunity to introduce Indian whisky to American consumers. Just as we hope more Indians will discover American whiskey, the reverse should happen too. Both industries can benefit from a cultural exchange rooted in craftsmanship and appreciation.

TD: Some small U.S. distilleries have recently closed. What’s driving that trend?

The U.S. market has grown rapidly—from just 60 distilleries 25 years ago to over 3,000 today. Naturally, some smaller operations face challenges due to market pressures. Still, the overall growth of craft distilleries remains a major success story.

We now have craft distilleries in nearly every state. It’s a vibrant ecosystem, much like what’s emerging here in India.

TD: Do you think the growing popularity of Irish whiskey globally has affected bourbon’s market share?

Not necessarily. Irish whiskey’s growth has actually helped expand the overall whiskey category. More variety leads to more consumer interest. Removing trade barriers and increasing accessibility benefits everyone—from bourbon to Scotch to Indian whisky.

BD: Over the years, spirits have overtaken beer and wine in U.S. market share. What’s behind that shift?

Twenty-five years ago, spirits had about 28.7% of the beverage alcohol market. Today, that’s over 42% by value. We’re even projected to surpass beer by volume by 2031. That growth comes from authenticity, innovation and the rise of craft distilling.

Chris: Let me ask you both—why did India historically impose such high tariffs on imported spirits?

TD: Mainly to protect the domestic industry. The tariffs used to be even higher—around 250% years ago—and were gradually reduced to 150%, and now 100%. The plan is to lower them further over the next decade. It’s about giving Indian producers time to mature and strengthen their market presence.

BD: Exactly. India’s spirits sector has evolved rapidly. Domestic producers are now competing in premium segments and exporting globally. Once the industry fully matures, we’ll likely see a more open and balanced playing field.

TD: American whiskey, being corn-based, has a sweeter profile. Do you think that suits Indian palates?

Absolutely. India is a sweet-loving market—rum and sweeter Scotch profiles are already popular. We believe bourbon’s natural sweetness will resonate very well here.

If I may add an analogy—just as parents must eventually set their children free to learn and grow, markets must also open up. India should set its whisky free, allowing it to compete and thrive alongside global peers. When that happens, both Indian and international spirits will flourish together.