Trump exempts Indian items from tariffs amid rising consumer costs
Rising US grocery prices have led to exemptions for dozens of food items from Washington’s reciprocal tariffs
Indian agricultural exporters are among the winners from US President Donald Trump’s exemption of dozens of food items from his reciprocal tariffs, which some analysts say could help revive lost demand.
Trump on Friday removed tariffs he had imposed on more than 200 food products, including beef, as consumer concerns mount over rising US grocery prices.
Unlike EU and Vietnamese suppliers facing 15-20 per cent duties, Indian exporters of tea, coffee, spices and cashew nuts were hit harder after Trump doubled tariffs to as high as 50 per cent on imports of certain Indian goods, including a punitive 25 per cent levy from the end of August on India’s Russian oil purchases.
Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), says that between US$2.5 billion and US$3 billion of exports will benefit from the tariff exemptions.
“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 said the exemptions are also a positive signal for ongoing US-India trade talks and could ease export pressure triggered by this year’s tariff increases.
