The United States has lifted its 50% tariff on Indian tea, coffee, spices, and tropical fruits, easing nearly USD 1 billion in export pressure. Rising food prices in America forced the Trump administration to step back, offering Indian exporters relief and boosting prospects for a broader trade agreement.
In a significant policy shift, the U.S. has withdrawn the 50% reciprocal tariff imposed on Indian agricultural products including tea, coffee, spices, tropical fruits, and juices. The rollback comes as American consumers face surging grocery prices, prompting the Trump administration to ease restrictions and accelerate trade talks with India.
Key Highlights
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Tariff Removal: The rollback covers tea, coffee, spices, tropical fruits, and juices, worth nearly USD 1 billion in exports.
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Reason for Change: Rising food inflation in the U.S. pressured policymakers to reduce import costs.
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India’s Gain: Exporters of tea, coffee, and spices are expected to benefit, reviving demand and improving margins.
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Trade Deal Outlook: Move signals progress toward a broader India–U.S. trade agreement currently under negotiation.
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Global Context: Tariffs were initially imposed in response to India’s continued purchase of Russian oil, but domestic U.S. concerns forced a policy reversal.
This development marks a win for Indian exporters and highlights how domestic economic pressures in the U.S. can reshape global trade dynamics.
Sources: Free Press Journal, Outlook Business, Financial Express, Bhaskar English