Trump Reverses Tariffs: Indian Agricultural Exports Benefit, Yet Major Obstacles Persist

Trump’s latest move to eliminate tariffs on agricultural imports has led to a notable change in U.S. trade strategy, positioning Indian exporters to gain from the adjustment. The White House revealed that duties would be lifted on products like coffee, tea, spices, and tropical fruits—a reversal prompted by increasing calls to tackle inflation and ensure supply chain stability. These exemptions, which will be applied retroactively from November 13, 2025, are projected to

.

This reduction in tariffs signals a shift away from Trump’s previous strict approach to reciprocal tariffs, which had been put in place in August 2025 to counter trade disparities. While the administration was initially reluctant to grant exemptions, it gradually eased its stance as inflation at home became a bigger concern and legal disputes arose. The most recent changes

, such as beef, bananas, and cocoa—many of which are major U.S. products but still face stiff competition from international suppliers. For Indian businesses, the end of tariffs on premium goods like spices and processed foods— —could make them more competitive in the American market.

India’s Commerce Ministry responded positively, stating that the exemptions help create fairer conditions for its agricultural exports, which reached $2.5 billion in the U.S. during 2024. Major segments like tea, coffee, and spices are expected to benefit immediately, with experts suggesting that 40% of India’s 2024 agricultural exports to the U.S. . Still, some analysts warn that the overall advantages may be modest, since India has little presence in other exempted goods such as citrus fruits and tomatoes, .

The National Restaurant Association, representing the food service sector, welcomed the policy change, describing it as essential for maintaining stable supply chains and reducing cost pressures for restaurants. “Restaurants rely on a consistent and affordable supply of ingredients throughout the year,” said Michelle Korsmo, the association’s CEO. “This measure will help keep menu options varied and prices in check”

. The group also pointed out that food prices have , partly due to tariffs on imported food products.

Although the tariff reductions are seen as a positive development for Indian agricultural exporters, the Trump administration continues to impose higher tariffs on certain imports, such as Brazilian beef and Indian toys. These ongoing tariffs remain contentious, with

since the higher duties were enacted. The Commerce Ministry stressed that to resolve these issues and fully unlock the U.S. market’s potential.

This policy adjustment also highlights wider geopolitical factors. Recent trade deals with nations like Ecuador and Argentina have

on farm goods, indicating a strategic shift toward strengthening bilateral trade while addressing domestic economic pressures. At the same time, India’s government has , including lifting quality controls on key raw materials like viscose staple fiber to enhance manufacturing competitiveness.

As the U.S. and India adapt to these changing trade relations, the immediate effects of the tariff exemptions will likely be most pronounced in agriculture. For Indian exporters, this presents a valuable chance to grow their presence in a vital market, though sustained progress will depend on resolving supply chain bottlenecks and broadening their export portfolio to capture more of the U.S. market.