US tariff impact: Mentha oil industry in UP's Rampur faces major crisis

The mentha oil industry in India is staring at massive losses worth several crores after the United States imposed a 50 per cent tariff on imports, exporters said. The steep duty, effective from 27 August 2025, has disrupted trade and placed the livelihoods of thousands of farmers and workers at risk.

The tariff comes after US President Donald Trump imposed an additional 25 per cent levy on India for its purchase of Russian crude oil, adding to the 25 per cent reciprocal tariffs announced earlier this month.

Mentha oil, widely used in medicines, cosmetics, and food products, has been hit hard. Exporter Amrit Kapoor said orders are either on hold or cancelled: “A product priced at USD 20 shot up to USD 30 overnight due to the duty. Buyers are unwilling to pay, goods are stuck in factories, and we don’t know when they’ll move.”

Kapoor warned of a cascading impact: over 10 lakh farmers connected to the trade may not even recover production costs, while factory layoffs loom if exports continue to shrink.

The crisis is not confined to mentha oil. In Moradabad, known as India’s “Brass City”, the handicrafts sector is also reeling. The region exports Rs 8,500–9,000 crore worth of handicrafts annually, with 75 per cent destined for the US. Exporter Haji Iftekhar said, “Orders worth Rs 300 crore have already been halted, and another Rs 150 crore is shifting to other countries. This could cut US-bound exports by half, leaving nearly 2 lakh workers jobless.”

Industry representatives have urged the government to intervene. Shirish Gupta, president of the Rampur chapter of the Indian Industries Federation, described the tariffs as a “pressure tactic” and called for schemes to protect affected industries.

With PTI inputs