White House Criticizes India's 150% Tariff on US Alcohol, 100% on Agriculture

Team Finance Saathi

    12/Mar/2025

What's covered under the Article:

  1. White House Press Secretary Karoline Leavitt highlights India’s high tariffs on American alcohol and agriculture.
  2. Trump administration demands "fair and balanced" trade practices and hints at possible tariff hikes.
  3. Trump criticizes global trade policies, calling them unfair to American businesses and workers.

The White House has called out India for imposing high tariffs on American products, with alcohol taxed at 150% and agricultural goods at 100%, as the Trump administration continues its push for "fair and balanced" trade policies.

White House Press Secretary Karoline Leavitt highlighted these tariffs in a statement on March 11, 2025, emphasizing that President Donald Trump supports reciprocal trade practices and will not allow other countries to take advantage of the US economy.

"If 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, holding up a "handy dandy chart" comparing global tariff rates.

US-India Trade Tensions Escalate

The US-India trade relationship has seen multiple challenges, with both countries imposing tariffs on each other's goods in recent years. The high tariff on American whiskey and bourbon has been a longstanding concern for US exporters, particularly from Kentucky, a state known for its bourbon industry.

Trump has repeatedly pushed for lower trade barriers, and this latest statement suggests potential retaliatory measures against India if the tariffs remain unchanged.

Leavitt also mentioned Japan’s 700% tariff on rice and Canada’s nearly 300% tariff on American dairy products, accusing these countries of unfair trade practices.

Trump Warns of Higher Tariffs

President Trump, in a separate statement, reinforced his administration’s pro-tariff stance, hinting that import taxes on Canada and Mexico could increase further.

"For years, globalists have been ripping off the United States. They've been taking money away from the United States, and all we're doing is getting some of it back," Trump said.

He also accused Canada of exploiting American trade policies for decades, calling its tariffs “egregious.”

Possible Trade Retaliation Against India

Given Trump’s history of using tariffs as a negotiation tool, there is a strong possibility that the US could impose new tariffs on Indian exports in response. The previous Trump administration had removed India's Generalized System of Preferences (GSP) trade benefits in 2019, and a similar trade policy shift could be expected.

With US elections approaching, Trump is likely to ramp up pressure on trading partners like India, Canada, and Japan, making reciprocity in tariffs a key talking point in his economic strategy.

For now, India has not officially responded to these remarks, but tensions in US-India trade relations may continue to rise in the coming months.


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