US cuts tariffs on Indian farm products, benefits exporters
Relief for the Indian export industry, the United States has reduced tariffs on 200 Indian agricultural and processed food products, covering selected farm-related items.
The US has cut tariffs on select Indian spices like black pepper, cardamom, and various types of Indian tea, while major exports like rice and seafood are not on the list. This new tariff reduction for India comes as the U.S. government tries to ease pressure from rising grocery costs in the U.S. and restore smoother trade. India’s farm exports are set to rise by Rs 26,000 Crore following this tariff rollback.
Impact on Indian Exports
India exports spices and tea to the US. In 2024, India exported over $500 million worth of spices and nearly $90 million worth of tea to the United States. Cashew exporters also benefit from this move, as India provides about one-fifth of the US cashew imports. However, import tariffs on seafood and rice are still the same, and high-value items like jewelry and gems continue to face a heavy 50% tariff.
The reason for the high tariff can be linked to India importing Russian crude oil, and the US is not happy with this, so the relief is selective but helpful. What this tariff reduction will do is that it will make Indian products available at low prices in the American market.
Indian Exports with Tariff Reduction
- Black Pepper
- Cardamom
- Turmeric
- Cumin
- Cloves
- Varieties of Indian Tea
- Cashews
The TACO List and Global Trade
The tariff relief, informally called the TACO list (Trump Always Chickens Out), is not just about a single country but it also covers products like beef from Argentina, coffee from Brazil, and fruits from Latin America. For India, this selective relief for exporters of spices, tea, and cashews provides a timely advantage and improves competitiveness in the U.S. agricultural market amid ongoing trade and geopolitical challenges.
