India’s agri exports value $1 billion exempted from US tariff hike after new Trump waiver

India’s agricultural exports to the USA acquired a significant increase after President Donald Trump authorised tariff exemptions on practically 200 meals merchandise, shielding shipments value round $1 billion from larger duties. The transfer comes because the US administration responds to public anger over rising meals costs forward of a politically delicate interval.

Indian merchandise that achieve from the waiver embody spices, tea, espresso, tropical fruits, cashew nuts, fruit juices, cocoa-based gadgets and several other vegetable and root merchandise. In line with the Directorate Basic of International Commerce, India exported agricultural items value $2.5 billion to the US in FY25, of which about $1 billion is now shielded from the steep tariff hikes.

Officers mentioned that almost 50 classes of processed meals – with export values estimated at $491 million final yr stand to learn instantly. These embody espresso and tea extracts, cocoa derivatives, fruit pulp, mango-based gadgets and vegetable waxes.

Spices are the subsequent main section, with exports valued at $359 million. The waiver additionally helps 48 forms of fruits and nuts, together with coconuts, guavas, mangoes, cashew, bananas, areca nuts and pineapples. Although these accounted for about $55 million in exports, the exemption is predicted to enhance competitiveness for Indian suppliers.

The White Home mentioned the revised tariff record covers meals gadgets that America doesn’t produce in adequate portions. The administration is dealing with stress to convey down meals costs after latest electoral defeats for the Republican Occasion in Virginia and New Jersey.

Trump signed an govt order permitting the tariff reduction, which took impact retroactively from midnight on November 13. Whereas the exemption applies to all US commerce companions, India good points considerably because the waiver covers practically one-fifth of its $5.7 billion agricultural exports.

The Commerce Ministry mentioned the exemption restores parity for Indian exporters after the US levied a 50 per cent tariff on a number of Indian meals merchandise earlier this yr. Officers famous that the change ought to help India’s export momentum in key agricultural classes.

The ministry added that the easing of duties is predicted to enhance order flows over the approaching months, notably in spices, processed meals, nuts and drinks, the place India holds sturdy market positions.