India and UK clash over bottled and bulk Scotch tariffs
India and the UK are clashing over how much tax should be paid on Scotch whisky under their free trade agreement.
The deal, which came into effect on July 15, 2026, was supposed to make Scotch cheaper by cutting tariffs from 150% to 75% immediately, with a further reduction to 40% over 10 years.
But here's the catch: India says only bottles filled in the UK get these lower rates, while bulk shipments for blending in India still face the old high tariff.
Pernod Ricard, Diageo push tariff cuts
This is a big deal because most Scotch coming into India arrives in bulk and ends up in popular blended whiskies like Blenders Pride and Royal Stag.
Major companies like Pernod Ricard and Diageo are pushing back, arguing that bulk imports should also get tariff cuts.
If things don't get sorted soon, your favorite blended whiskies could get pricier as talks between the government and industry continue.