look news india
US President Donald Trump famously took another big and shocking U-turn in his aggressive tariff policies. Irish Whiskey It has been announced to completely abolish the 10% import duty imposed on. Trump made this announcement during the closing and trophy distribution ceremony of the ‘Irish Open’ golf tournament held in Doonbeg, Ireland. Trump, known for his distinctive and outspoken style, said amid loud applause and whistles from the audience that everyone from the Prime Minister of Ireland to golfers had been continuously pleading for the removal of this tariff. While Trump’s decision has paved the way for American consumers and the hospitality sector to reduce whiskey prices in the upcoming holiday season, its positive impact is also being seen in the global liquor market.
As soon as he took the stage after the Irish Open title match, Trump made the atmosphere happy by announcing the removal of tariffs:
-
Prime Minister and golfers urge: Trump revealed that several players, including Irish Prime Minister Michael Martin and Irish Open winner Shane Lowry, had personally appealed to him to remove the whiskey tariffs.
-
Trump’s blunt comment: Trump said from the stage, “Everybody’s been bugging me. So I said—on behalf of the United States, I’m removing all tariffs on Irish whiskey!”
-
What were the rules on Irish whiskey: The Trump administration had earlier imposed a standard tariff of 15% on products imported from the European Union (EU), which was reduced to 10% in July. Now it has been announced that the remaining levy of 10% will also be reduced to zero.
Actually, behind this decision of Trump there was a major imbalance of trans-Atlantic trade:
-
Zero tariff on Scotch and UK whiskey: Trump in late April announced a zero-tariff policy on Scotch and spirits from Northern Ireland coming from the United Kingdom (UK). Trump had claimed that this exemption was given at the request of Britain’s King Charles III and Queen Camilla during their White House visit.
-
Trade Imbalance: After Britain’s Scotch whiskey became duty-free, a 10% duty on Republic of Ireland whiskey remained, causing Irish brands to suffer huge losses in the US market. In May itself, the Irish Whiskey Association (IWA) had demanded the US government to immediately withdraw it.
diWhiskey lovers hope for relief from Trump’s tariff U-turn, know what effect it will have on prices and global trade
Meta Description: Donald Trump Whiskey Tariff: Donald Trump has indicated to withdraw the 10% import duty on whiskey. Know whether the prices of Scotch and American Bourbon will fall in global markets including India and what effect it will have on the trade war.
The recent statement of former US President Donald Trump, who often takes a tough stance on international trade and tariff policies, has created a stir in the global liquor market, especially the premium whiskey industry. Trump has taken a U-turn on the decision of imposing 10 percent import duty on liquor and spirits and has hinted at removing it. Since this announcement, consumers and importers have been asking whether the prices of foreign whiskey will reduce in the coming days.
The American spirits industry, particularly the producers of American Bourbon and Tennessee Whiskey, had long been suffering heavy losses due to European and international retaliatory tariffs. The European Union (EU) and the UK had imposed retaliatory tariffs of 25 to 50 percent on American whiskey in response to tariffs previously imposed on steel and aluminum by the Trump administration. This was later temporarily postponed through negotiations, but trade uncertainty remained.
Impact of Trump’s decision on global spirits market and supply chain
A 10% reduction in the tariff or its complete removal would have a direct positive impact on global exports of American whiskey. When customs duty on a product decreases, logistics and landing costs for distilleries reduce. However, the situation is a bit different and complex in the context of the Indian market.
The central government’s Basic Customs Duty and Agricultural Infrastructure Development Cess (AIDC) on foreign liquor for Indian consumers are already at a maximum level of 150%. Additionally, liquor in India is a subject of the State List, where each state decides its own excise policy, VAT and additional cess. If the US government removes tariffs on its own, the biggest benefit will be to US exporters and international wholesale distributors, which can stabilize prices in the global supply chain.
Only if there is any reciprocal exemption in duty on premium spirits under the bilateral trade negotiations between India and the US, the retail market will see a significant decline in the MRP of bottles. At present, this announcement is being considered a major policy change towards calming the international trade war and facilitating the global supply chain.