Trump Tariff Rollback: Indian Tea Gets Boost, Other Products See Limited Gains

Written by: Kuldeep

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Trump Tariff Rollback: Exporting products to foreign markets is both a major challenge and an opportunity for businesses in any country. Recently, US President Donald Trump lifted tariffs on over 200 food products, providing relief to Indian tea exporters. This decision has brought hope to the Indian tea industry, as demand for Indian tea is already growing rapidly in the US.

How much will the tea industry benefit?

Trump Tariff Rollback
Trump Tariff Rollback: Indian Tea Gets Boost, Other Products See Limited Gains
ParticularsDetails
News TopicTrump Tariff Rollback on Food Products
Beneficiary IndustryIndian Tea Exporters
Number of ProductsOver 200 food products
Tariff StatusTariffs removed by US government
Impact on Indian TeaDirect relief, increased demand in US market
2024 Export Data16.8 million kg tea worth ₹671.32 crore
Other Indian ProductsMinimal US market share; limited benefit
Key CommentatorsBala Sarda (CEO, Wagh Bakri Tea), Anshuman Kanoria (Chairman, Indian Tea Exporters Association)
Trade ImplicationsPositive start for India-US trade, further improvements possible
Overall OutcomeTea exporters benefit; overall gains limited for other products

In 2024, India exported approximately 16.8 million kilograms of tea leaves to the US, worth approximately ₹671.32 crore (approximately $1.2 billion). This figure represents a 28% increase from the previous year. The US buys both CTC and Orthodox tea leaves from India, while Sri Lanka and Vietnam also export tea there. Amid this growing demand, the tariff removal could prove directly beneficial for Indian tea exporters.

According to Bala Sarda, founder and CEO of Vahdam Tea, the tariff removal will have an immediate impact, and discounts will also apply to orders already in transit. Anshuman Kanoria, Chairman of the Indian Tea Exporters Association, said that relief is visible, but full confirmation is awaited from the Indian Commerce Ministry.

Why will other Indian products benefit less?

Experts say that India’s share in the food products on which the US has lifted the tax is very small. India mainly exports spices, tea leaves, and a small quantity of fruit products to the US. However, India’s share in major categories like tomatoes, citrus fruits, bananas, etc. is negligible. Therefore, overall, this relief will be limited to only a few select products.

Nevertheless, the industry is considering this a positive sign. If the US also removes the penalty tax on oil imports, it could further strengthen India-US trade. According to experts, such initiatives also provide an opportunity to improve trade relations in the long term.

New Hope for the Tea Industry

The decision to lift the tariff has given new energy and enthusiasm to the Indian tea industry. Exporters can now plan to expand their sales in the US and have the opportunity to meet the demand for tea more quickly. This move could also enhance the brand value of Indian tea and strengthen its competitiveness in the international market.

Trump Tariff Rollback
Trump Tariff Rollback: Indian Tea Gets Boost, Other Products See Limited Gains

While the tariff removal has directly benefited Indian tea exporters, the benefits for other products will be limited. This decision is encouraging for traders and opens the door to further changes in India-US trade in the future. The industry hopes that such positive steps will benefit the entire export sector in the future.

FAQs

Q1. What did the Trump tariff rollback involve?
Over 200 US food product tariffs were removed for exporters.

Q2. Which Indian industry benefited the most?
Indian tea exporters saw immediate relief and increased US demand.

Q3. How much tea did India export to the US in 2024?
India exported 16.8 million kg worth approximately ₹671.32 crore.

Q4. Did other Indian products gain significant benefit?
No, most other products have minimal US market share.

Q5. What is the long-term impact on India-US trade?
It signals positive beginnings with potential for stronger trade relations.

Disclaimer: The information provided in this article is for educational and news purposes only. Please consult a certified expert or financial advisor before making any investment or trading decisions.

Kuldeep

Hi, I’m Kuldeep Gautam. I create high-quality content and blogs focused on business, automobiles, technology, and finance. I deliver clear, engaging, and insightful articles that help readers stay informed and make smart decisions. My goal is to provide content that adds real value and connects with the audience.

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