New Delhi: In a major policy reversal aimed at easing domestic inflation in the United States, President Donald Trump has withdrawn tariffs on nearly 200 food products. The move is expected to significantly boost India’s exports of spices, tea, cashew and several processed food categories, strengthening bilateral trade ties between New Delhi and Washington.
Tariff Withdrawal Opens New Doors for Indian Exporters
The Trump administration’s decision stems from rising food prices in the US and mounting political pressure following recent electoral setbacks. The government acknowledged that several food products facing higher tariffs were not produced in adequate quantities within the US, making tariff relaxation essential to meet domestic demand.
Among the products benefiting from the tariff rollback are major Indian export categories such as black pepper, cloves, cumin, cardamom, turmeric, ginger and multiple varieties of tea. Mango-based items, fruit juices, cocoa products, natural waxes and cashew nuts have also been included in the list.
In 2024, India exported over USD 500 million worth of spices to the US, while tea and coffee exports stood at USD 83 million. Cashew exports reached nearly USD 200 million. Exporters believe the tariff cuts could drive a 15–20% rise in shipments across these segments.
Over 50 Processed Food Categories to Benefit
Indian officials confirmed that more than 50 processed food categories will directly gain from the US decision. Last year, India exported USD 491 million worth of such products to the American market, including coffee and tea extracts, fruit juices, mango products and cocoa-based items.
Additionally, 48 categories of fruits and nuts—including coconut, guava, mango, cashew, banana, betel nut and pineapple—are expected to see improved market access. Exporters anticipate that reduced tariffs will make Indian goods more competitive against suppliers from Latin America, Africa and Southeast Asia, helping them capture a larger share of the American consumer market.
Inflation Pressures and Political Setbacks Drive Policy Shift
The rollback comes at a time when US households are grappling with sharply rising food prices. President Trump had repeatedly expressed concern over the inflationary burden on Americans. The Republican Party’s recent losses in Virginia and New Jersey further intensified the political urgency to take corrective action.
In response, the administration moved to ease import costs and increase supply by withdrawing duties on key food categories. The tariff relief comes into effect from midnight on Thursday, November 13, and is expected to have an immediate impact on US retail prices.
A Win-Win for India–US Trade Relations
The decision is being hailed as a mutually beneficial opportunity. While US consumers may get relief from high food prices, India stands to gain greater access and competitiveness in one of the world’s largest consumer markets. Experts believe the tariff rollback could mark a new phase of agricultural and food-sector collaboration between the two countries.
