US Lifts 50% Tariffs on Indian Coffee, Tea, and Spices in Trade Boost
The US has removed a 50% tariff on key Indian agricultural exports, including coffee, tea, spices, tropical fruits, and fruit juices. This decision follows months of negotiations and is expected to boost trade worth nearly USD 1 billion. The move comes as both nations near a broader trade agreement, easing previous tensions over import duties.
The tariff had originally been imposed under former US President Donald Trump in 2025, targeting around USD 48.2 billion of Indian goods. It was introduced partly in response to India’s continued purchase of Russian oil. However, rising food prices in the US led to its reversal.
In the financial year 2024-25, India exported goods worth USD 86.51 billion to the US, with agricultural products alone accounting for USD 2.5 billion. The Director General of Foreign Trade (DGFT) confirmed that the tariff removal will directly benefit nearly USD 1 billion of these exports.
The Commerce Ministry has stated that this change will strengthen trade in spices, processed foods, and other high-potential sectors. It also aims to improve the overall trade balance between the two countries. Indian exporters now face a more level playing field, making their products more competitive in the US market.
Negotiations for a wider trade deal have seen significant progress, with discussions focusing on market access and tariff reductions. The latest rollback is seen as a positive step toward finalising this agreement.
The tariff removal provides immediate relief worth around Rs 9,000 crore for Indian exporters. It also signals a shift in US trade policy, easing previous protectionist measures. With both sides moving closer to a comprehensive trade deal, further improvements in bilateral trade are expected.
