Indian spice and tea exporters are set to gain from a new U.S. tariff rollback that eases import duties on nearly 200 food and farm items.
The move, signed off by President Donald Trump, is aimed at easing domestic price pressures and restoring trade flow — even as larger Indian exports like shrimp and basmati rice remain excluded.
The rollback follows mounting political pressure over high grocery bills in the U.S., which led to Republican losses in recent by-elections. In response, Trump signed an executive order reversing tariffs on key food imports, including black pepper, cardamom, turmeric, cumin, cloves, and varieties of Indian tea.
India exported over $500 million worth of spices and nearly $90 million of tea to the U.S. in 2024. The tariff cut is expected to improve price competitiveness and market access for these categories, which had been squeezed under the previous duties.
Indian cashew exporters also benefit, with the U.S. importing $843 million worth of the nuts globally, 20 percent of which came from India. However, major Indian exports like seafood and basmati rice — both billion-dollar categories — did not make the cut. High-value segments like gems, jewelry, and apparel also remain under a 50 percent punitive tariff regime tied to India’s ongoing purchases of Russian oil.
An analyst said the rollback covers only about $500 million to $1 billion worth of Indian exports but helps stem the 37 percent decline in U.S.-bound trade from India since the August 2025 tariffs were imposed.
The move comes amid Trump’s broader campaign to ease voter anger over inflation. He has floated plans to issue $2,000 tariff rebate checks to Americans and opened an inquiry into the meat packing industry. Despite the policy reversal, Trump continues to insist tariffs have not worsened the cost-of-living crisis.
Critics point to growing public frustration, mocking the disconnect between rising grocery bills and Trump’s extravagant displays, including a Halloween party modeled on The Great Gatsby and a planned expansion of his Mar-a-Lago estate.
The tariff easing, dubbed the TACO list (Trump Always Chickens Out), includes beef from Argentina, coffee from Brazil, and fruit from Latin America. For India, the break is narrow but crucial, giving a temporary edge to select exporters in a tense trade climate still shadowed by political leverage and oil diplomacy.
