Indian agricultural exporters are set to benefit from U.S. President Donald Trump’s recent exemption of dozens of food items from his reciprocal tariffs, potentially reviving demand that was lost due to earlier levies. Trump on Friday lifted tariffs on more than 200 food products, including beef, as Americans grapple with rising grocery prices.
Indian exporters of tea, coffee, spices, and cashew nuts had been particularly affected after Trump doubled tariffs on certain Indian goods, reaching as high as 50% in some cases, including a 25% levy on India’s Russian oil purchases introduced in late August. Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), estimated that $2.5–3 billion worth of exports could benefit from the exemptions, particularly in premium, speciality, and value-added products.
The exemptions are also seen as a positive signal for ongoing U.S.–India trade talks and could help ease export pressure caused by the recent tariff hikes. Indian exports to the U.S. fell nearly 12% year-on-year in September to $5.43 billion, with farm exports, valued at $5.7 billion in 2024, among the hardest hit.
While the tariff relief could revive demand for niche products such as high-value spices and horticulture, experts caution that Indian exporters’ limited presence in key exempt categories like tomatoes, citrus fruits, melons, bananas, and fruit juices may restrict gains. Competition from Latin American, African, and ASEAN suppliers, high freight costs, and stringent U.S. quality requirements could also limit the benefits.
“Tariff relief is important, but market recovery also depends on logistics and our ability to match prices,” said one exporter, highlighting that exemptions alone may not fully offset challenges in the U.S. market.
