New Delhi — The United States has exempted nearly $1 billion worth of Indian agricultural exports from steep tariff hikes, following a new executive order signed by President Donald Trump aimed at addressing rising food costs for American consumers. The move provides relief for Indian exporters of coffee, tea, spices, tropical fruits, and other processed foods, which will now avoid a 50 percent tariff previously imposed on many imported goods.
According to Director General of Foreign Trade Ajay Bhadoo, India exported approximately $2.5 billion in agricultural products to the U.S. during the last fiscal year. Of this, about $1 billion worth of shipments — including high-value items such as spices, fruit juices, and cocoa-based products — will now benefit from the exemption.
The Commerce Ministry said exports of spices, valued at $358.66 million, make up the single largest category being exempted. Other key beneficiaries include processed food items worth $491.31 million and tea and coffee exports valued at $82.54 million. The list also covers 48 fruit and nut products, vegetable oils, essential oils, and limited quantities of beef and bovine goods.
“This exemption applies to all trading partners, but it creates a level playing field for Indian exporters,” the Commerce Ministry said in a statement.
Officials suggested that around 50 categories of processed foods — including coffee extracts, mango pulp, cocoa products, and vegetable waxes — will see the greatest benefit. While India’s fruit and nut exports to the U.S. totaled only $55 million last year, products like cashew nuts, pineapples, coconuts, guavas, and bananas have been included in the tariff relief.
The updated tariff list affects roughly one-fifth of India’s $5.7 billion agricultural exports. The decision comes in the wake of political setbacks for the Trump administration after Republicans lost gubernatorial races in Virginia and New Jersey, which intensified pressure to address inflation and consumer grievances.
The White House said the tariff exemptions were issued through an executive order effective retroactively as of midnight on November 13. The administration noted that the selected food products are not produced in sufficient quantities domestically to meet demand.
The move marks a significant development in the trading relationship between the two countries and is expected to boost India’s agribusiness sector at a time of global economic volatility. (Source: IANS)
