America removed 50% tariff from India’s tea, coffee and spices: Trump came on the backfoot due to food items becoming expensive in the US.

Trump has taken this decision due to increasing prices of agri products in the American market.

America has withdrawn 50% reciprocal tariff imposed on Indian products like coffee, tea, spices, tropical fruits and fruit juices. This will provide major relief to agricultural exports worth about $1 billion (approximately ₹9,000 crore).

This exemption was issued by executive order of the White House on November 12 and came into effect from November 13. America had imposed 50% tariff on India for buying Russian oil. Due to the continuous increase in the prices of food items in America, the Trump administration came on the back foot.

India’s agri exports to America in the financial year 2025 were worth 2.5 billion dollars (₹22 thousand crores), out of which exports worth Rs 9 thousand crores have now become tax-free.

The Commerce Ministry has given this information on November 17. The Directorate General of Foreign Trade (DGFT) said that this will provide a level playing field to Indian exporters.

Trade deal may also happen soon

The trade deal between India and America is now almost in the final stages. India’s Commerce Secretary Rajesh Aggarwal said that America’s demand for access to the Indian market, 25% reciprocal tariff and additional 25% duty on crude oil has almost been agreed upon. He said we will finalize it soon. Talks on a trade deal between the two countries have been going on since February this year.

America’s yield is low, hence tariff removed

America has removed tariffs on those products whose production is less there. According to the Commerce Ministry, the export value of the spice is $358.66 million (about ₹3,200 crore), which is now tax-free.

Similarly, exports of 50 processed food items worth $491.31 million (about ₹4,345 crore) and tea-coffee worth $82.54 million (about ₹731 crore) have got relief.

Tax exemption has also been granted on $54.58 million (₹484 crore) of 48 products of fruits and nuts, some essential oils, 26 vegetables and edible roots, as well as some beef and bovine products. All these products give good yield only from countries with tropical climate, hence America exempted them.

India sold goods worth ₹7.66 lakh crore to US in FY25

According to government estimates, high tariffs were imposed on India’s exports worth $48.2 billion (about ₹4.3 lakh crore). A total of goods worth $86.51 billion (about ₹7.66 lakh crore) were sent to America in FY25, of which the top five categories like textiles, jewellery, engineering goods etc. are worth $60 billion (about ₹5.3 lakh crore).

DGFT director said – direct benefit of 1 billion dollars

Ajay Bhadu, Director General of Directorate General of Foreign Trade (DGFT), said, ‘India’s agri exports to America were worth $ 2.5 billion in FY25, out of which about $ 1 billion has now been exempted.

This step will give Indian exporters a level playing field in the market, as earlier the 50% tariff was making pricing difficult. Growth will be faster in segments like spices and processed foods. The Commerce Ministry also agrees that this step will improve the trade balance.

————————–

Read this news also…

First deal between India and America after tariff: India will buy 10% of the required gas from US, this will strengthen our energy security.

India and America have signed the first deal amid the tariff dispute. Under this deal, India will buy about 2.2 million tonnes (MTPA) of LPG from America. This is 10% of India’s annual requirement. This deal is only for one year i.e. 2026.

Click here to read the full news…

There is more news…