The United States has announced a sweeping removal of reciprocal tariffs on a broad list of agricultural and processed-food products, offering a significant boost to Indian exporters who had been hit hard by steep duties earlier this year. The revised exemption list, released by the White House and effective from November 13, covers 254 items—including 229 agricultural products—representing nearly $1 billion of India’s annual shipments to the US market.
The move is part of an effort by the US administration to cool domestic inflation and ease pressure on American consumers. President Donald Trump signed the executive order that eliminates tariffs on a wide range of commodities such as tea, coffee, spices, nuts, and tropical fruits. These levies were originally imposed in August as part of a broader reciprocal tariff policy, prompting concerns among global exporters and sharply impacting India’s trade.
Indian agro exports had experienced a steep decline following the earlier tariff announcement. Shipments to the US dropped roughly 12% in September, compared to the previous year, falling to $5.43 billion. The 50% tariff rate on Indian goods—by far the highest among affected countries—had severely disrupted key sectors, particularly tea, coffee, spices, and cashew exports.
With the rollback now in place, industry watchers expect a strong revival in demand. The Federation of Indian Export Organisations (FIEO) has estimated that the tariff exemption could directly benefit at least $2.5 billion worth of exports. India remains a major supplier of spices to the US, exporting nearly all categories except thyme, valued at around $358 million annually. Tea and coffee shipments together contribute more than $82 million.
According to a report by the Global Trade Research Initiative (GTRI), India’s exports to the US are concentrated in premium and high-value spices such as cardamom, cumin, pepper, ginger-turmeric-curry mixes, capsicum products, and niche fruit derivatives. The report also noted that India has limited export presence in several categories included in the exemption list—such as tomatoes, melons, citrus fruits, bananas, fresh fruits, and fruit juices—where other countries dominate the supply chain.
Nevertheless, the tariff cut is being seen as a highly favorable development for Indian producers and traders, many of whom faced months of reduced orders following the April tariff shock. With barriers now removed, exporters anticipate a strong rebound in shipments during the coming quarters as American buyers resume purchases.
