Tariff hikes may spare high-end Indian spirits

26% US reciprocal tariffs on liquor unlikely to dent single malt exports

- Dhirendra Kumar & Varuni Khosla

India's premium whisky, including single malts, headed to the US may not be hit even as the liquor sector may feel the heat of the additional 26% reciprocal tariffs introduced by the US.

"An increase in tariffs does have an impact, but whether it will be significant or just a knee-jerk reaction will become clear only after the release of the detailed schedule in the next few days," said Vinod Giri, director general, Brewers Association of India (BAI).

However, the additional duties may not impact premium spirits like single malts or other high-end categories as the products have a greater capacity to absorb tariff-related costs, Giri said. The steep rise in duties could threaten the sector's overall momentum, particularly in the case of ethyl alcohol, said trade experts. The existing duty on the category was 3.3%.