The United States has rolled back tariffs on more than 250 food and agricultural imports, a move expected to significantly benefit Indian exporters across key categories such as spices, tea, coffee, and cashew nuts. The policy shift comes as the U.S. administration attempts to rein in rising domestic food prices.
A Relief After Two Years of Strain
Earlier tariff hikes had adversely impacted India’s agricultural shipments. Indian farm exports to the U.S., valued at about US$5.7 billion in 2024, saw a decline after duties were raised on several categories. The rollback is now expected to aid between US$1 billion and US$3 billion worth of Indian exports by improving cost competitiveness.
Products Likely to Benefit
While the complete list covers more than 250 items, several are highly relevant to India:
- Tea and tea preparations
- Spices such as black pepper, cumin, turmeric, and cardamom
- Coffee and processed coffee products
- Cashews and other specialty agri-products
Reports confirm that tea, spice, and coffee exporters—who saw reduced demand due to earlier tariffs—are among the biggest beneficiaries of the rollback.
Why the U.S. Rolled Back Tariffs
Food prices in the United States have been rising, prompting the administration to cut duties to reduce import costs for American consumers. Lower tariffs on agricultural inputs and processed foods are expected to ease grocery inflation.
Gains, But With Caveats
Experts note that India’s advantages will depend on logistics, pricing, and competition from markets such as Vietnam and Brazil. These structural challenges may limit the full scale of the benefits.
A Boost for Bilateral Trade
Analysts say the rollback may help stabilize U.S.–India trade relations after years of tariff tensions, creating room for renewed dialogue on broader economic cooperation.
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