Business

Trump lifts duties on food imports; Indian mangoes, tea and spices may see an uptick

White House says tropical fruits, beverages, spices and items like coffee, cocoa, oranges, tomatoes and beef are now tariff-exempt

US President Donald Trump
US President Donald Trump  PTI

US President Donald Trump has reversed a major plank of his tariff-centred trade policy by scrapping duties on a broad range of everyday food imports, citing rising public anger over grocery prices. The move is expected to benefit Indian exports of mangoes, pomegranates, tea, spices and other agricultural products.

The White House confirmed that tropical fruits, juices, tea, spices and several other items will no longer attract reciprocal tariffs. The updated list also includes coffee, cocoa, oranges, tomatoes and beef, which has reached record price levels in recent months.

The decision marks a significant shift for the administration, which had earlier imposed a 25 per cent reciprocal tariff on imports from India, along with an additional 25 per cent levy linked to India’s purchase of Russian oil.

According to the Associated Press, Trump announced the rollback aboard Air Force One, saying: “We just did a little bit of a rollback on some foods like coffee.” When asked whether tariffs had contributed to rising prices, he acknowledged that “they may, in some cases”, though he maintained they were largely absorbed by exporting countries.

The reversal follows a series of off-year election losses for Republicans in New York, New Jersey and Virginia, where voters identified affordability as a key concern. An NBC News poll this week found that 63 per cent of registered voters felt Trump had not met expectations on managing the cost of living, with nearly one-third of Republicans agreeing.

Although inflation has eased since its peak under former President Joe Biden, food items affected by tariffs have continued to see sharp price increases. September’s Consumer Price Index data showed roasted coffee prices up 18.9 per cent and beef and veal up 14.7 per cent. Indian grocery retailers in the US reported spice and food import price hikes of about 30 per cent.

Industry groups welcomed the rollback. The Food Industry Association said the tariff relief was “an important factor” in mitigating retail price pressures and would help ensure an adequate supply of essential food items at reasonable prices.

The White House said that certain tariffs were no longer necessary following new framework agreements with Ecuador, Guatemala, El Salvador and Argentina, designed to expand US industrial and agricultural exports while reducing barriers on food imports.

Trump has previously taken selective steps to curb inflationary pressures, including exempting generic medicines from tariffs, a move that particularly aided India, which supplies nearly half of all generic drugs prescribed in the US.

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For India, the rollback opens fresh opportunities in agricultural trade. Mangoes, which hold symbolic significance in India–US economic relations, have featured in bilateral discussions since former President George W. Bush lifted import restrictions in 2006.

During Trump’s 2020 visit to New Delhi, mangoes and pomegranates were explicitly mentioned in the joint statement with Prime Minister Narendra Modi.

US lawmakers were quick to frame the shift as a political concession. “President Trump is finally admitting what we always knew: his tariffs are raising prices for the American people,” said Virginia Democrat Don Beyer, adding that the administration was attempting a “pivot to affordability” after recent electoral setbacks.

Despite the rollback, Trump has continued to dismiss affordability concerns as a partisan narrative, emphasising lower fuel prices under his presidency and highlighting the inflation surge that occurred during Biden’s tenure, which at one point reached 19.7 per cent by Trump’s account.

Nevertheless, the pressure to ease grocery bills appears to have forced a recalibration, with Friday’s order removing tariffs on a wide slate of staples, including tea, cocoa, fruit juices, bananas, spices, tomatoes, fertilisers and high-priced beef, many of which are not produced within the US and therefore had little relation to domestic manufacturing.

Trump had hinted earlier in the week that changes were imminent, telling Fox News host Laura Ingraham: “Coffee — we’re going to lower some tariffs. We’re going to have some coffee come in.”

With affordability emerging as a potent political issue, Friday’s decision signals a rare retreat from Trump’s tariff-heavy agenda, while opening the door for renewed gains for Indian exporters as US consumers look for relief from stubbornly high food prices.

With IANS inputs

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