President Donald Trump has taken a major step to control rising inflation in the US. He has cut import duties on more than 250 food items, which has not only given relief to American consumers but also brought good news for Indian farmers and exporters. Experts believe this move could increase India’s agricultural exports to the US by $2.5–3 billion (around Rs 22,000–26,000 crore). At a time when many Indian products were losing ground in the American market because of high tariffs, this decision has created fresh hope for Indian exporters.
The US has reduced import duties on 250 food items, out of which 229 are agricultural products. For months, high tariffs on key Indian exports—such as spices, tea, coffee, cashews, and many fruits and vegetables—had sharply affected India’s trade. Spice exports from India had fallen after the Trump administration raised duties by 50%, even though the US spice market is worth $358 million for India. India also exports more than $82 million of tea and coffee every year. With the new duty cuts, things are expected to improve quickly. Indian exports may rise again, especially in high-value items like pepper, cardamom, cumin, turmeric, ginger, and premium fruits.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said that the new import-duty relief announced by the US is a big advantage for India. He added that this move could boost India’s exports by nearly $3 billion. The decision is especially helpful for sectors where India already has strong quality and high production capacity.
Experts believe India will gain the most in these categories:
- Spices and herbs
- High-value fruits and vegetables
- Tea, coffee, and cashews
- Premium fruit-based products
Not all Indian products will gain the same benefits from the US tariff cut. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), explained that many of the items included in the US duty relief are products where India does not have a strong market presence. So, the advantage for those items may be limited. However, products like spices and specialty horticulture items are expected to see higher demand again, especially after the earlier tariff increase.
Why did Trump change his decision?
The Trump administration had repeatedly said that high tariffs help control inflation. But as food prices continued to rise and Americans became increasingly frustrated, the government was forced to review its policy. To reduce inflation and give relief to the public, the US finally decided to cut tariffs on several food items.
Boost for India’s economy
After the US imposed tariffs of up to 50% in April, India’s exports dropped by 12%, falling to $5.43 billion in September. This new tariff relief is therefore very important—not only for Indian farmers but also for the country’s economy. Lower duties will make Indian goods more competitive in the American market once again.
