New Delhi. US President Donald Trump has taken a big step. He has removed tariffs on about 200 food, agricultural and farm products. Indian farmers and agricultural exporters have got a big relief from Trump’s decision to remove tariffs imposed on dozens of food items. This has increased hopes of improvement in exports of Indian tea, coffee, spices and cashew nuts, which were under heavy pressure in the last few months.
According to Ajay Sahay, Director General of Federation of Indian Export Organizations (FIEO), this decision will directly benefit India’s exports worth $ 2.5 to 3 billion. He says that now Indian companies will be able to focus more on premium and value-added products, which will give them better prices and stable demand.
Indian exports declined by about 12%
Government officials believe that this step is also a positive sign for India-US trade talk. Indian exports to the US declined by about 12% after the tariff increase in September 2025. Indian agricultural exports, which total $5.7 billion to the US in 2024, were particularly affected by this decline.
Challenges due to strict quality standards
However, some experts have warned that there will be a limit to these benefits. India is weak in many food items on which tariffs have now been removed, such as tomatoes, citrus fruits, bananas and juices. Apart from this, challenges will remain due to tough competition from countries like Vietnam and Indonesia, high freight rates and stringent quality standards of the US market.
The decision may provide relief to Indian farmers
Despite this, India’s position in spices and special types of horticultural products is expected to be strengthened. Exporters say that this decision can bring back a part of the lost demand in the American market and provide relief to Indian farmers.
Which sectors will get the most benefit?
1. Processed food sector
About 50 types of processed food products – whose total export value last year was about $491 million. They are considered to be the biggest beneficiaries of this decision. Reduction in tariff will increase the competition of these products in the American market.
2. Spices
Indian spices worth $359 million will be the next big beneficiary of this relief. Earlier their demand was affected due to increased tariffs in the American market.
3. Fruits and nuts
48 varieties of fruits and nuts like coconut, guava, mango, cashew, banana, betel nut and pineapple will also benefit from this reduction. Although their total exports were only 55 million dollars, but with the removal of tariffs, their hold in the American market is likely to be strengthened.
