Indian exports of spices, tea, cashew nuts and processed foods are set to receive a major boost after US President Donald Trump announced a rollback of tariff hikes on nearly 200 food products. The move comes as the administration faces mounting political pressure following rising consumer prices and recent electoral setbacks.
The revised tariff list includes several key Indian export items — black pepper, cardamom, cloves, cumin, turmeric, ginger, various tea categories, mango-based products and nuts such as cashew. The decision aims to make these products more affordable for American consumers amid inflation concerns.
India exported over $500 million worth of spices to the US in 2024. Tea and coffee exports stood at nearly $83 million, while cashew shipments were valued close to $200 million. With the tariff rollback, these sectors are expected to strengthen further in the coming year.
According to Indian trade officials, around 50 processed food categories, worth $491 million in exports last year, stand to gain the most. These include coffee and tea extracts, cocoa preparations, fruit juices, pulp items, mango products and vegetable waxes.
Spices worth $359 million are likely to be the next major beneficiary, followed by 48 varieties of fruits and nuts — coconuts, bananas, guavas, pineapples, areca nuts and more — which collectively accounted for $55 million in exports.
Taken together, the revised tariff list impacts nearly one-fifth of India’s $5.7 billion agricultural exports to the United States.
The White House stated that these tariff exemptions were approved because the listed food products are not produced domestically in sufficient quantities. The order is effective retroactively from midnight, November 13, giving Indian exporters an immediate advantage.
Trump’s latest move marks a shift in tone as the administration grapples with rising living costs and the Republican Party’s losses in Virginia and New Jersey last week. While he had previously dismissed inflation concerns, the pressure has prompted swift economic adjustments.
