US Removes Tariffs on Key Agri and Processed Foods
US President Donald Trump issued an executive order that exempts a wide range of agricultural and processed-food items from the “reciprocal tariffs” imposed earlier this year. The move means that products such as coffee, tea, fruits, nuts, spices and essential oils will now face zero import duty instead of the previously imposed rates of up to 50 %.
The exemptions take effect from November 13 and apply to all countries, including India.
Why the Change Was Made
The tariff rollback comes amid pressure from rising grocery bills in the United States and growing concern that high import duties were pushing up costs for consumers. Trump acknowledged that in some cases the tariffs may have contributed to higher prices. The administration said the adjustment followed “additional information and recommendations” from officials about the economic impact of the reciprocal tariff regime.
Implications for India and Others
For India, these tariff exemptions open up an opportunity for certain agri-exports — especially coffee, tea, spices and nuts — to become more competitive in the US market. However, India’s exports in these categories to the US are a relatively small portion of its total shipments.
Globally, the move signals a pivot in US trade policy: from blanket protection to selective relief on food and processed-food items. It may also have ripple effects on supply chains and pricing in exporting countries.
What Remains Unchanged
Despite the relief on many items, the exemptions do not cover all categories of agricultural goods. Tariffs on staple grains, large-scale commodities and some sensitive food items remain in place. The broader framework of reciprocal tariffs remains operative for non-exempt products.
