Daijiworld Media Network - New Delhi
New Delhi, Nov 17: India’s agricultural exports to the United States have received a major lift, with nearly $1 billion worth of goods now exempt from steep US tariffs following President Donald Trump’s decision to cut duties on about 200 food items. The move comes amid rising political pressure in the US over inflation and aims to make imported food products more affordable for American consumers.
Products that will benefit immediately include coffee, tea, tropical fruits, fruit juices, cocoa, spices and bananas.
According to Ajay Bhadoo, Director General of the Directorate General of Foreign Trade (DGFT), India exported $2.5 billion worth of agricultural goods to the US in FY25, of which roughly $1 billion will now enjoy tariff-free access.
The Commerce Ministry said the exemptions cover:
• Spices worth $358.66 million
• Fifty processed food products valued at $491.31 million
• Tea and coffee totalling $82.54 million
• Forty-eight fruit and nut items worth $54.58 million
• Essential oils, certain vegetables, edible roots, and select beef and bovine products
For India, processed foods stand to gain the most, including items such as coffee and tea extracts, cocoa derivatives, fruit juices, mango-based preparations and vegetable waxes. Spices, valued at nearly $359 million, are expected to see significant growth as well. Fruits and nuts—such as guava, mango, cashew, coconut, banana, areca nut and pineapple—will also benefit, though their export values remain relatively modest at around $55 million.
Altogether, the revised list impacts nearly 20% of India’s $5.7 billion agricultural exports.
The tariff rollback follows election setbacks for Trump’s Republican Party in Virginia and New Jersey, which intensified pressure on the administration to address rising living costs. Though the tariff relief applies to all trading partners, Indian officials said it helps level the playing field for exporters.
The White House said the affected products are those not produced domestically in sufficient quantities. The tariff cuts have taken effect retroactively from midnight on November 13.