The United States has announced tariff exemptions on over 250 food products, including 229 agricultural items, providing a significant boost to Indian exports that had been impacted by earlier tariff hikes. The exemptions cover items such as coffee, tea, spices, cashew nuts, tropical fruits, and processed foods, accounting for about $1 billion worth of India’s exports to the U.S. This move comes as part of efforts to ease domestic inflation and is expected to stimulate demand for Indian agro-products after a decline caused by the high tariffs imposed in April 2025.
India’s exports to the U.S. suffered a 12% decline in September compared to the previous year, with sectors like tea, coffee, spices, and cashews being the most affected. With the new tariff relief in place, these sectors are likely to see a revival, improving margins and expanding market share in the competitive U.S. market.
However, Indian exports to the U.S. remain concentrated in a few high-value categories such as pepper, capsicum, ginger-turmeric-curry spices, cumin seeds, cardamom, tea, cocoa beans, cinnamon, cloves, and fruit products. India does not have a significant presence in many other exempted categories like tomatoes, citrus fruits, melons, bananas, and most fresh fruits and fruit juices, where larger exporting countries dominate.
Overall, this U.S. tariff exemption helps Indian exporters regain competitiveness, potentially boosting agro-export revenues and supporting rural manufacturing linked to food processing.
