Trump trims duties on Indian tea and spices, easing relief for exporters
Trump trims duties on Indian tea and spices, easing relief for exporters
Trump cuts duties on nearly 200 agri-items, including Indian spices, tea, and cashews, promising relief while seafood, basmati, and gems remain taxed.
WASHINGTON — US President Donald Trump announced a scaled-back set of reciprocal tariffs, lowering duties on nearly 200 food and agricultural items after domestic price pressures sparked by tariff costs. Among the exemptions are Indian spices such as black pepper, cloves, cumin, cardamom, turmeric and ginger, as well as varieties of tea and mango derivatives, plus cashews. Indian spice merchants and tea growers are expected to benefit, even as other big exporters aren't as fortunate.
On the numbers side, Indian spice exports to the US were valued at more than $500 million in 2024, while US imports of Indian tea reached roughly $90 million. The US also imported about $843 million worth of cashews, with India accounting for about one-fifth of those shipments. Yet not all sectors win: seafood like shrimp, basmati rice, and certain gems and jewelry remain subject to tariffs and sanctions, keeping some friction in place ahead of a broader trade deal.
Officials say the carve-outs cover only a small portion of India's total qualifying agricultural exports—potentially boosting competitiveness and stabilizing market access after a roughly 37% drop in India's overall US exports since tariffs were first imposed. The move is portrayed as a step toward a broader agreement, with Washington signaling a willingness to negotiate while New Delhi considers energy ties and other trade considerations.
Analysts say the impact will depend on how quickly categories are adjusted and how other countries react, but relief on spices, tea, and cashews could help ease price pressures for American consumers and open more stable channels for Indian growers.
Cover image source: US cuts import tariffs on key agri, processed foods 🔗
