US-India Trade Deal Opens Market for Kansas Farms, Kentucky Bourbon

Congressman Derek Schmidt of Kansas said the agreement reflects priorities he pushed with US trade officials last year, including market access for grain sorghum, dried distillers' grains and soybean products.

"The Indian market potential is enormous and is vital to Kansas agriculture exporters as the dynamics with China continue to evolve," Schmidt said. "I am grateful to the Trump administration for prioritizing Kansas agricultural exports in this new framework and will continue to work closely with our trade officials to make sure Kansas producers and agribusinesses see the benefits."

Schmidt said he raised the issue with the US Trade Representative in May, urging negotiators to focus on farm exports critical to Kansas. The final framework includes all three commodities he highlighted.

Kansas produces more grain sorghum than any other US state and is also a major producer of dried distillers' grains, a byproduct widely used in animal feed. The state's Second Congressional District includes soybean oil facilities in Cherryvale and Emporia.

"The economy in farm country is challenging," Schmidt said. "So, this good news is particularly welcome. I'll keep fighting to open markets and to support Kansas farmers, ranchers, and our rural economy."

In Kentucky, Congressman Andy Barr said the agreement's tariff provisions for US spirits could be a turning point for the state's signature bourbon industry. Barr is co-chair of the Congressional Bourbon Caucus and vice-chair of the Congressional India Caucus.

"Unfettered access to a top five economic market will be a boom for our Kentucky bourbon businesses," Barr said. "President Donald Trump has delivered for bourbon before-by cutting taxes, leveling the playing field for distillers, and standing up for American-made products. Today, I join Kentucky distillers in toasting to the President once again for securing access to a major new market for our signature bourbon industry."

Industry groups echoed that message. Michael Bilello, president and chief executive of the American Whiskey Association, said tariff reductions would strengthen the entire supply chain.

"Reducing India's tariffs on American whiskey-particularly native spirits from Kentucky, including world-class bourbon and rye-is a meaningful step forward for US distillers, farmers, and the broader supply chain that supports this iconic American product," Bilello said. He added that Barr had been "a consistent and effective advocate for American whiskey."

The Distilled Spirits Council also welcomed the framework, noting earlier tariff cuts by India and recent trade deals New Delhi reached with Europe.

"Last year's tariff reduction on US spirits imports to India was an important first step that opened new opportunities for Bourbon producers in the world's largest whiskey market," the council said. It said it hoped the new agreement would ensure "fair and competitive access to the Indian marketplace."

India cut its tariff on American bourbon from 150 per cent to 100 per cent in February 2025, following negotiations led by President Trump. During his first term, Trump signed the Craft Beverage Modernization and Tax Reform Act into law, legislation championed by Barr that lowered federal excise taxes and eased financing rules for distillers.

The US-India trade framework is part of a broader push by Washington and New Delhi to deepen commercial ties amid shifting global supply chains and trade tensions. Both governments have said they aim to move toward a more comprehensive bilateral trade agreement building on recent sector-specific gains.

- IANS