US slashes tariffs on Indian spices and tea, skips rice and seafood in relief list

Indian spices and tea exporters are expected to benefit from the cancellation of new US tariffs, easing import duties on nearly 200 food and agricultural products.

The move, signed by President Donald Trump, is aimed at easing domestic price pressures and restoring trade flow – even as larger Indian exports such as shrimp and basmati rice continue to be excluded.

This decline comes in the wake of increasing political pressure over rising grocery bills in the United States, which led to Republican losses in the recent by-elections. In response, Trump signed an executive order eliminating tariffs on key food imports, including black pepper, cardamom, turmeric, cumin, cloves, and various types of Indian tea.

India exported more than $500 million worth of spices and nearly $90 million worth of tea to the United States in 2024. The tariff reduction is expected to improve price competitiveness and market access for these categories, which were curtailed under previous tariffs.

Indian cashew exporters also benefit, as the United States imports $843 million worth of nuts globally, 20% of which comes from India. However, major Indian exports such as seafood and basmati rice – both billion-dollar categories – did not make the list. High-value sectors such as gems, jewellery, and clothing remain subject to a punitive 50% tariff regime linked to India’s ongoing purchases of Russian oil.

This decline covers only about $500 million to $1 billion of Indian exports, but it helps stem the 37% decline in U.S.-bound trade from India since the tariffs were imposed in August 2025, one analyst said.

The move comes amid Trump’s broader campaign to ease voter anger over inflation. He has floated plans to issue $2,000 customs rebate checks to Americans and opened an investigation into the meatpacking industry. Despite the policy change, Trump continues to insist that the tariffs have not worsened the cost-of-living crisis.

Critics point to growing public frustration, mocking the disconnect between rising grocery bills and Trump’s extravagant offerings, including a The Great Gatsby-themed Halloween party and a planned expansion of the Mar-a-Lago resort.

The tariff relief, dubbed the taco menu (Trump always takes out the chicken), includes beef from Argentina, coffee from Brazil, and fruits from Latin America. For India, the gap is narrow but crucial, giving a temporary advantage to select exporters in a tense trade climate still clouded by political influence and oil diplomacy.