Us tariff exemptions for over 200 products shine a light on opportunity for Indian agricultural exports

A surprising shift in U.S. trade policy has opened a potentially favourable route for Indian agricultural exporters, as the Trump administration announced tariff exemptions on more than 200 food- and agriculture-related items. The move, formalised via a White House Executive Order on November 12 and effective from November 13, removes reciprocal tariffs previously imposed on categories such as tea, coffee, spices, tropical fruits, fruit juices and nuts.

In a formal statement, India’s Commerce Ministry welcomed the decision, describing the tariff rollback as a restoration of a level playing field for Indian exporters. Joint Secretary Darpan Jain of the Department of Commerce noted that “Now our exports will have a level playing field”. Many in India’s agricultural export sector see this as a positive signal, especially given that certain Indian exports had faced punitive tariffs—up to 50 per cent—under earlier U.S. measures.

According to industry estimates, Indian agricultural goods worth between US$2.5 billion and US$3 billion stand to benefit from the tariff relief. The sectors likely to derive the greatest gain include high-value segments such as speciality spices, tea and coffee, essential oils and processed food items. These categories already have an established export footprint to the U.S. and are now poised to leverage improved competitiveness.

However, analysts caution that the opportunity, while promising, has its limitations. Global Trade Research Initiative (GTRI) founder Ajay Srivastava pointed out that India currently supplies only around US$548 million worth of the exempted products into the U.S. import basket—out of a total U.S. import value exceeding US$50 billion for those categories—highlighting the narrow base of India’s export participation in many of the exempted lines. Many of the largest exempt categories—such as tomatoes, citrus fruits, melons, bananas and fruit juices—do not yet count India as a leading supplier, which means that while tariff relief is welcome, the structural gains may initially be modest.

Exporters also point to non-tariff hurdles that remain. These include elevated freight costs, stringent U.S. quality and food-safety standards, competition from strong suppliers in Latin America and Southeast Asia (particularly Vietnam and Indonesia), and the need for cold-chain logistics and scale in niche horticulture. “Tariff relief is important, but market recovery also depends on logistics and our ability to match prices,” one exporter commented.

From a broader trade-diplomacy standpoint, the U.S. decision signals a positive gesture in the bilateral relationship between India and the United States. While the tariff relaxation applies universally across partners, it removes one of the key impediments for India’s agricultural exports and may provide momentum for further trade engagement.

For Indian agriculture, the development underscores the need to expand export capacity from a handful of commodities into a more diversified portfolio. With global markets adjusting, India’s policy and industry must focus on building supply-chains, improving product standards, investing in higher-value processing and leveraging its diaspora-driven demand for Indian speciality foods.

In conclusion, the U.S. tariff exemption move opens a window of opportunity for India’s agricultural exporters to regain competitiveness in a key market. While the benefits may not be immediate or sweeping, given structural challenges, the change offers a renewed platform for growth and access. The coming months will be indicative of how quickly India can translate this trade signal into tangible export recovery and expansion.