US President Donald Trump announced a reduction in import duties on nearly 200 agricultural and food products, including Indian spices, tea, and processed foods.
Indian exporters of tea, coffee, spices and cashew nuts faced steeper losses after the Trump administration raised duties on several Indian products to as much as 50%, alongside a separate 25% penalty that took effect in late August on India’s purchases of Russian oil.
While, India’s European and Vietnamese competitors faced tariffs in the 15–20% range.
The updated tariff list covers several products in which India is a major global supplier, including black pepper, cloves, cumin, cardamom, turmeric, ginger, premium teas, mango-based products and selected nuts such as cashew.
In 2024, India sent over half a billion dollars’ worth of spices to the US, while coffee exports to the American market approached $83 million.
However, some of India’s farm-related exports such as shrimp and basmati rice, have not been granted relief. High duties also remain in place on Indian jewellery, garments and gems while broader trade disagreements continue.
Officials involved in trade and agricultural policy described the tariff cuts as a constructive signal for ongoing US–India negotiations. They also hope the move will help offset the pressure faced by exporters since this year’s tariff hikes, which contributed to a nearly 12% year-on-year drop in India’s September shipments to the US, down to $5.43 billion.
Farm goods that are valued at about $5.7 billion out of India’s $87 billion in total exports to the US in 2024 were among the most affected.
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