Trump lowers duty on tea, spices

Blitz Bureau

NEW DELHI: US President Donald Trump has exempted a wide range of agricultural and processed-food items from reciprocal tariffs, which will also apply to India, effectively reducing import duties from 50% to zero on products including coffee, tea, fruits, nuts, spices and essential oils, people with direct knowledge of the matter said, adding that these represented a small portion of the Indian exports to US that may hold potential. The Trump Administration on November 14 released a revised list—Annexure II—of goods exempted from country-specific reciprocal tariffs that were imposed in August this year. The exemptions became effective from November 13.

In an executive order issued on November 14, President Donald Trump said he had decided to modify the scope of products subject to reciprocal tariffs based on “additional information and recommendations” from officials. “Specifically, I have determined that certain agricultural products shall not be subject to the reciprocal tariff imposed under Executive 14257, as amended,” the order said. The exemptions cover 254 new products, including 229 agricultural items, representing over $1 billion of India’s exports to the US out of total agricultural exports of $5.7 billion in 2024, one of the people cited above said. In all, India exported close to $86.50 billion in goods to the US, comprising mostly electronics equipment, pharma products and precious stones and metals.

The US imports 48 types of fruits and nuts from India, including coconuts, guavas, mangoes, cashew nuts, bananas, areca nuts and pineapples. It also imports 50 processed food products such as coffee and tea extracts, cocoa preparations, juices, fruit pulps, mango-based products and vegetable waxes.

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