India Threatens to Reverse Scotch Tariff Cuts in UK Steel Standoff

New Delhi may rescind FTA concessions that would have slashed Scotch whisky duties from 150% to 75% immediately, and to 40% over a decade, if Britain refuses to ease steel safeguard measures. The standoff puts $34 billion in bilateral trade flows at risk.

— Filed Mon, 1 Jun, 2026, 21:30 IST · Source NDTV Profit · Updated

India may roll back tariff concessions on Scotch whisky and other UK goods under the India-UK FTA if Britain doesn't ease steel safeguard duties, threatening planned cuts from 150% to 75% and eventually 40%.

Why this matters

First major friction point on the India-UK FTA since signing, testing whether tariff concessions on flagship goods like Scotch whisky hold against unrelated trade disputes.

Retail-brand signals steady at 834 over 90 days, with trade-policy disputes increasingly shaping pricing outlooks.