Will India’s Exports of Spices, Tea, and Cashew Flourish as Trump Reduces Tariffs?
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Synopsis
As President Trump rolls back tariffs on food imports, India’s exports of spices, tea, and cashew nuts are set to thrive. This pivotal move comes in response to rising prices and political backlash, potentially reshaping the trade landscape. Discover how these changes will impact Indian producers and American consumers alike.
Key Takeaways
- Tariff reductions on food imports can significantly boost Indian exports.
- Indian spices, tea, and cashew nuts are major beneficiaries.
- Political pressure due to rising prices influenced this decision.
- Approximately 50 processed food categories stand to gain from these changes.
- This move could enhance trade relations between the US and India.
New Delhi, Nov 16 (NationPress) The Indian export market is poised for a significant boost as President Donald Trump has announced a substantial reduction in tariffs on nearly 200 food items, including spices, tea, and cashew nuts, aimed at making these products more accessible to American consumers amidst rising prices that sparked political criticism.
Included in this revised list are various Indian food exports, such as black pepper, cloves, cumin, cardamom, turmeric, ginger, diverse tea varieties, mango derivatives, and cashew nuts.
In 2024, India's spice exports to the US were valued at over $500 million, while tea and coffee exports reached approximately $83 million. Furthermore, the US imported around $200 million worth of cashew nuts from India.
Officials from India stated that nearly 50 categories of processed foods, with export values estimated at $491 million last year, are expected to benefit the most. This encompasses coffee and tea extracts, cocoa-based items, fruit juices, pulp products, mango preparations, and vegetable waxes.
Spices alone, valued at $359 million, are anticipated to be among the top beneficiaries. An additional 48 varieties of fruits and nuts, including coconuts, guavas, mangoes, cashew nuts, bananas, areca nuts, and pineapples, will also gain from these changes, although they accounted for only about $55 million in total exports. Collectively, this revised tariff list affects nearly one-fifth of India's agricultural exports, which total $5.7 billion.
President Trump has signed an executive order permitting the import of a range of food products as his administration confronts increasing pressure related to rising living costs. Although Trump previously downplayed concerns regarding inflation, he has been compelled to respond following electoral losses for his Republican Party in Virginia and New Jersey last week.
The Trump administration claims that the food products listed cannot be produced in adequate quantities domestically. The retroactive tariff exemptions for these food items took effect at midnight on Thursday, November 13, according to the White House.
Point of View
This tariff reduction is a critical step towards alleviating the financial burden on consumers while supporting Indian agricultural exporters. The decision reflects a responsive approach to rising prices and could strengthen trade relations between the US and India.
NationPress
16/11/2025
Frequently Asked Questions
What food products are affected by the tariff reduction?
The tariff reduction affects nearly 200 food products, including spices, tea, and cashew nuts, among others.
How much did India export in spices to the US in 2024?
India's exports of spices to the US were valued at over $500 million in 2024.
When did the tariff exemptions take effect?
The tariff exemptions took effect retroactively at midnight on Thursday, November 13.
What is included in the processed food categories benefiting from this change?
Processed food categories include coffee and tea extracts, cocoa-based items, fruit juices, pulp products, and mango preparations.
Why did President Trump reduce tariffs on food imports?
President Trump reduced tariffs in response to rising prices and political backlash, aiming to make food products more affordable for consumers.
