50% Tariff to Hit Indian Agri Exports to US
08-Aug-2025 10:46 AM
New Delhi. From August 7, 25 percent import duty (tariff) has been imposed on Indian products in America, while an additional duty of 25 percent is going to be effective from August 27. In this way, India, along with Brazil, has joined the select group of countries whose products will be charged a tariff of 50 percent or more in America.
Meanwhile, a US delegation is going to visit India on August 25 and the sixth round of talks for a bilateral trade agreement between the two countries is going to begin.
Experts say that this new tariff policy will make the import of various products in America expensive and common people will have to face great difficulty when inflation increases.
This new tariff is also likely to affect the export of Indian agricultural products in America, which mainly includes Basmati rice and spices. Apart from this, importing guar gum and castor oil, which are mainly exported from India, will be expensive for America.
Exporters say that India has to bear a high level of shipment cost for export of agricultural products to America, which makes the price of Indian products uncompetitive in the American market as compared to Latin American countries.
Now if a 50 percent customs duty is imposed on it, then it will become almost impossible to export Indian agricultural and horticultural products there.
But there are some products on which America depends a lot for import and despite the high rate of tax on it, its export from India can be possible. This also includes pomegranate.
It is imported to America from Peru, but due to limited production there, the stock gets exhausted quickly and then American importers have to import it from India for a few months.
India will have to face a tough challenge from Pakistan in the export of Basmati rice because only 19 percent tariff has been imposed on Pakistani products in America. Export of spices is also likely to be partially affected because less tariff has been imposed on Vietnam and Indonesia.