Tea, Coffee and Spices Among Indian Goods Exempted From New US Tariffs

New Delhi, November 20: The United States government has provided some relief to India after it announced some relaxations in its tariffs. The US government announced that it is exempting select agricultural items from the list of its products with high import duties. This has provided limited relief to Indian farmers and food exporters.

Tariff Action Background

In August 2025, the US government imposed retaliatory import duties of up to 50% on a wide range of Indian products. The tariffs were imposed by the US government as a result of India continuing its purchase of Russian oil. At that time, the tariffs negatively affected Indian sectors such as textiles, leather goods, jewellery, and seafood.

Details About Newly Exempted Products

The US government has exempted several products for which India is a key exporter. Key exempted products include:

• Coffee and tea
• Spices such as turmeric, ginger, cinnamon, cardamom and cumin
• Cashew nuts and other tree nuts
• Tropical and niche fruits, fruit preparations, juices and pulp

Limited Relief for Some Export Segments

The relief provided through these exemptions remain limited, as many high-volume product categories still remain under heavy tariffs. Furthermore, the US government has not exempted key products such as shrimp, basmati rice, textile, and jewellery, and they continued to face heavy tariffs.

Why the US Rolled Back Tariffs on Select Items?

The US government has been facing criticism as the prices of most goods have increased for their local consumers. At the time of announcing the exemptions, the US government said that it is exempting these products due to cost pressures being faced by US consumers. It said that it wants to ensure that certain food imports remain affordable, leading to lower domestic prices for those products.

What’s Ahead?

With the new exemptions, Indian exporters have found a way to recover a part of their market share they lost due to the heavy tariffs. However, the relief is limited and affects only a small number of Indian exporters. One good outcome is that the trade negotiations between both the countries are active again, which may lead to a better trade agreement in the future. For producers of tea, coffee, spices and nuts, the current relaxations provide a limited but good opportunity, opening a path for further such exemptions.

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