'Opens Space For Premium Products': Trump Tariff Exemption Boosts Indian Farm Exports

Last Updated:November 16, 2025, 19:17 IST

On Friday, Trump had removed duties on over 200 food items, including beef, amid growing concerns over rising grocery prices in the US

Indian exporters of tea, coffee, spices and cashew nuts had been hit particularly hard after Trump increased tariffs on certain Indian goods to as much as 50%.

Indian agricultural exporters are set to benefit from U.S. President Donald Trump’s latest tariff exemptions, which could help revive demand for some key farm products.

On Friday, Trump had removed duties on over 200 food items, including beef, amid growing concerns over rising grocery prices in the United States.

Indian exporters of tea, coffee, spices and cashew nuts had been hit particularly hard after Trump increased tariffs on certain Indian goods to as much as 50%. A 25% levy on India’s Russian oil imports from August further compounded the pressure.

Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), told Reuters that between $2.5 billion and $3 billion worth of Indian exports are expected to benefit from the exemption.

“This order opens space for premium, speciality and value-added products," he said. “Exporters who shift towards higher-value segments will be better protected from price pressures and can tap rising consumer demand."

Officials involved in trade and farm export policy described the exemptions as a positive signal for ongoing US–India trade talks. The move could also relieve some of the export pressure created by last year’s tariff increases.

India’s overall exports to the US fell nearly 12% in September year-on-year, to $5.43 billion, with farm exports accounting for roughly $5.7 billion of the $87 billion expected in 2024. “The move benefits Indian farmers and exporters of tea, coffee, cashew and fruits and vegetables," a senior government official said on condition of anonymity.

Experts warn that gains may be limited. Ajay Srivastava, founder of the Global Trade Research Initiative, noted that Indian farm exports largely focus on a few high-value spices and niche products, while the country has a weak presence in key exempt items such as tomatoes, citrus fruits, melons, bananas and fruit juices.

“The tariff shift would marginally strengthen India’s position in spices and niche horticulture and help revive some lost US demand after the tariff hikes," he said.

Other suppliers from Latin America, Africa and ASEAN are expected to gain more from the exemptions. Exporters also face challenges from high freight costs, strong competition from Vietnam and Indonesia, and stricter US quality requirements. “Tariff relief is important, but market recovery also depends on logistics and our ability to match prices," one exporter said.

(With inputs from Reuters)

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