India’s agri exports worth $1 billion exempted from US tariff hike after new Trump waiver

India’s agricultural exports to the United States received a major boost after President Donald Trump approved tariff exemptions on nearly 200 food products, shielding shipments worth around $1 billion from higher duties. The move comes as the US administration responds to public anger over rising food prices ahead of a politically sensitive period.

What the exemption covers?

Indian products that gain from the waiver include spices, tea, coffee, tropical fruits, cashew nuts, fruit juices, cocoa-based items and several vegetable and root products. According to the Directorate General of Foreign Trade, India exported agricultural goods worth $2.5 billion to the US in FY25, of which about $1 billion is now protected from the steep tariff hikes.

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Officials said that nearly 50 categories of processed food - with export values estimated at $491 million last year stand to benefit immediately. These include coffee and tea extracts, cocoa derivatives, fruit pulp, mango-based items and vegetable waxes.

Spices are the next major segment, with exports valued at $359 million. The waiver also helps 48 types of fruits and nuts, including coconuts, guavas, mangoes, cashew, bananas, areca nuts and pineapples. Though these accounted for about $55 million in exports, the exemption is expected to improve competitiveness for Indian suppliers.

Why the tariff cut was announced?

The White House said the revised tariff list covers food items that America does not produce in sufficient quantities. The administration is facing pressure to bring down food prices after recent electoral defeats for the Republican Party in Virginia and New Jersey.

Trump signed an executive order allowing the tariff relief, which took effect retroactively from midnight on November 13. While the exemption applies to all US trade partners, India gains significantly as the waiver covers nearly one-fifth of its $5.7 billion agricultural exports.

How the waiver helps Indian exporters?

The Commerce Ministry said the exemption restores parity for Indian exporters after the US levied a 50 per cent tariff on several Indian food products earlier this year. Officials noted that the change should support India’s export momentum in key agricultural categories.

The ministry added that the easing of duties is expected to improve order flows over the coming months, particularly in spices, processed foods, nuts and beverages, where India holds strong market positions.