India’s $1 Billion Farm Exports to US Exempted From Tariff Hikes After Trump Orders Cuts on 200 Food Items

Nov 2025 : India’s agricultural exports worth nearly $1 billion to the United States will now be exempt from steep tariff hikes, following US President Donald Trump’s decision to slash duties on close to 200 food products. The move, announced amid rising political pressure over soaring food prices in the US, aims to make imported items more affordable for American consumers.

Products that stand to benefit in the US market include coffee, tea, tropical fruits, fruit juices, cocoa, spices, and bananas, among several others.

“India’s agricultural exports to the US stood at $2.5 billion in FY25, of which around $1 billion is now exempted,” said Ajay Bhadoo, Director General of the Directorate General of Foreign Trade (DGFT), on Monday.

According to the Commerce Ministry, food products exempted from the earlier 50% tariffs include spices worth $358.66 million, 50 processed food categories valued at $491.31 million, and tea and coffee totaling $82.54 million.

Other categories expected to gain include 48 varieties of fruits and nuts worth $54.58 million, select essential oils, 26 items under vegetables and edible roots, and a few beef and bovine products.

“Although the tariff cuts apply to all trading partners, they create a level playing field for Indian exporters,” the Ministry noted.

Officials said that among the biggest winners will be nearly 50 types of processed food products, which earned India $491 million in US exports last year. These include coffee and tea extracts, cocoa-based foods, fruit juices, pulps, mango preparations, and vegetable waxes.

Spices—valued at $359 million—are expected to be the next major beneficiary. The revised tariff list also covers 48 fruit and nut items, such as coconuts, guavas, mangoes, cashew nuts, bananas, areca nuts, and pineapples, though these contributed a relatively modest $55 million to last year’s agricultural exports.

Altogether, the updated exemptions cover nearly one-fifth of India’s total $5.7 billion agricultural shipments to the US.

President Trump signed the executive order amid mounting criticism from both political rivals and voters over rising living costs. While he had earlier dismissed concerns about inflation, last week’s electoral setbacks for the Republican Party in Virginia and New Jersey intensified pressure on his administration to act.

The White House said the tariff relief was necessary because many of the covered food products cannot be produced domestically in adequate quantities. The exemptions will apply retroactively from midnight, Thursday, November 13.

The move is expected to provide a significant boost to Indian agricultural exporters at a time of global trade uncertainty.

Team Maverick.