 "Indian spice, tea exporters to gain as Trump rolls back US food import tariffs amid price spike")
Indian spice exporters and tea growers are set to benefit after US President Donald Trump, facing backlash over rising domestic food prices, moved to cut import tariffs on nearly 200 food, farm and agricultural items.
Among the long list of products are spices such as black pepper, cloves, cumin, cardamom, turmeric and ginger, along with tea varieties, mango-based goods and nuts including cashews — all key Indian exports.
According to a report from The Times of India, in 2024, India’s spice exports to the US were worth over $500 million, while tea and coffee shipments totalled nearly $83 million. The US also imported $843 million worth of cashew nuts from across the world, with India supplying around 20%.
However, major Indian exports such as shrimp, other seafood products and basmati rice were not included in the tariff rollback. High US tariffs also remain on gems, jewellery and apparel — sectors still awaiting relief until Washington clinches a larger trade deal with New Delhi. Trump has indicated that such a deal will follow only once India reduces Russian oil imports and increases purchases of US energy.
Overall, the exemptions cover just over $1 billion worth of India’s eligible agricultural shipments.
According to Indian officials as cited in TOI report, the biggest gainers will be around 50 processed food products — worth $491 million last year — including coffee and tea extracts, cocoa preparations, juices, fruit pulps, mango-based items and vegetable waxes. Spices, valued at $359 million, will also see significant relief.
In addition, 48 fruits and nuts — coconuts, guavas, mangoes, cashews, bananas, areca nuts and pineapples among them — stand to benefit, though their combined export value was only about $55 million. This accounts for nearly a fifth of India’s agricultural exports, estimated at $5.7 billion. Overall, the exempted items make up roughly 40% of India’s goods exports to the US, which totalled $86 billion last year.
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View All“These reductions will provide a level-playing field for these agri exports which were disadvantaged due to higher tariffs on India’s exports vis-a-vis its competitors. Our products are well-placed to gain due to existing supplier credibility, established distribution networks, and strong diaspora-driven demand — factors that provide a competitive edge in the US,” an Indian government official said to TOI.
Trump announced the tariff cuts in an executive order on Friday, amid growing frustration among Americans over soaring living costs. The political fallout was evident in recent bypolls, where Democrats scored major wins after campaigning heavily on affordability concerns.
The US president has also suggested distributing $2,000 rebate cheques using tariff revenue and launched a probe into the meat-packing industry as anger rises over food inflation.
US trade associations and analysts welcomed the rollback, even as Trump maintained that his tariffs were not responsible for higher prices.
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