US tariff relief to boost India’s spice and cashew sector

17-Nov-2025 05:10 PM

Mumbai. The US imposed reciprocal tariffs on the import of more than 200 food products, significantly increasing their prices and causing significant hardship to the general public. In response,

the government has announced import duty concessions on dozens of food products, which could help India meet lost demand. Products from the European Union and Vietnam were subject to import duties of only 15-20 percent, while Indian products were subject to a 50 percent customs duty, making Indian products uncompetitive in the US.

The imposition of a 50 percent import duty in the US severely impacted the export of Indian spices, processed cashews, tea, and coffee, and also adversely affected the textile industry. However, the situation is now expected to return to a significant level.

The Director General of the Federation of Indian Export Organizations says that after the tariff concessions, India could have an opportunity to increase exports by between $2.50 and $3 billion.

The US President's order has reopened the door for premium quality, specialty, and value-added products.

Exporters engaged in exporting high-quality premium products may benefit significantly. They can now actively engage in meeting growing consumer demand.

It is noteworthy that there was a strong demand to remove the tariffs imposed on Indian pepper imports in the US.

Furthermore, there was a demand to reduce the import of spices and products that are not or are not produced in the US.

The imposition of a 50 percent tariff in late August reduced Indian exports to the US by approximately 12 percent to $5.43 billion. In 2024, exports to the US totaled $87 billion, of which agricultural product shipments accounted for $5.70 billion.