Did Trump Just Drop Tariffs on Food Imports That Could Boost India's Mango, Tea Exports?
Synopsis
Key Takeaways
- Tariff Cuts: Trump has reduced tariffs on food imports.
- Benefit for India: India's mango, pomegranate, and tea exports may see a positive impact.
- Political Landscape: Affordability is becoming a key political issue.
- Voter Concerns: Rising costs of living are influencing electoral outcomes.
- Market Reactions: Food prices have been affected by tariffs, impacting consumers.
New York, Nov 15 (NationPress) US President Donald Trump has reduced tariffs on food imports, responding to the rising political concern about affordability. This decision may provide a boost to India's exports of mangoes, pomegranates, and tea.
Among the imports exempted from reciprocal tariffs are tropical fruits, juices, tea, and spices, as announced by the White House on Friday.
Additional items included in the White House Factsheet are coffee, cocoa, oranges, tomatoes, and beef.
Previously, Trump enacted 25 percent reciprocal tariffs on imports from India, alongside an additional 25 percent levy for purchasing Russian oil.
To tackle inflation, he exempted generic medicines from tariffs, which is advantageous for India, supplying 47 percent of the generic medicines used in the US.
Rising food product prices were partly attributed to increased tariffs, which importers and retailers passed on to consumers.
In the recent elections in New York City, New Jersey, and Virginia, Democrats focused their campaigns on affordability, highlighting the financial strain on voters' budgets, which contributed to their electoral success.
While Trump has been preoccupied with international matters, voters have been more concerned about the practical issue of prices.
An NBC News poll released this week indicated that 63 percent of registered voters feel that Trump has not met their expectations regarding the cost of living and the economy, with 30 percent of Republicans agreeing.
Trump characterized the affordability concern as a “complete con job” by the Democrats, citing decreasing petrol and energy prices, while noting that inflation reached 19.7 percent at one point during former President Joe Biden's administration.
Despite the ongoing inflation debate, some food products have seen price increases driven by tariffs.
According to the September Consumer Price Index data, roasted coffee prices surged by 18.9 percent, with beef and veal increasing by 14.7 percent.
Prices for spices and food imports from India have risen by approximately 30 percent in Indian grocery stores.
India's mango imports hold a significant place in India-US relations, especially after former President George W. Bush famously lifted the ban in 2006.
In conjunction with discussions about missiles, nuclear cooperation, and technology innovation, mangoes were highlighted in the joint statement issued by Trump and Prime Minister Narendra Modi during Modi's visit in February.
According to the statement, “India also expressed appreciation for US measures taken to enhance exports of Indian mangoes and pomegranates to the United States.”