Trump cuts food import tariffs; Indian mango and tea exports set to gain
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New York: US President Donald Trump has announced a reduction in tariffs on food imports, a move aimed at tackling rising consumer costs. The decision is expected to benefit India’s exports of mangoes, pomegranates and tea.
The White House said tropical fruits, juices, tea and spices will not face reciprocal tariffs. Other exempted items include coffee, cocoa, oranges, tomatoes and beef.
Trump had earlier imposed 25 per cent reciprocal tariffs on imports from India, alongside an additional 25 per cent penalty for countries buying Russian oil. However, in efforts to contain inflation, he exempted generic medicines, a sector where India supplies nearly half of prescriptions in the US.
Higher tariffs had contributed to price increases, with importers and retailers passing costs on to consumers. September’s Consumer Price Index showed roasted coffee prices up 18.9 per cent and beef and veal rising 14.7 per cent. Spices and Indian food imports were reported to be about 30 per cent costlier in US grocery stores.
The tariff rollback comes as “affordability” emerges as a key political issue. Democrats highlighted rising living costs in recent elections in New York City, New Jersey and Virginia, helping secure victories. An NBC News poll this week found 63 per cent of registered voters dissatisfied with Trump’s handling of the economy and cost of living, including 30 per cent of Republicans.
Trump dismissed the affordability debate as a “con job” by Democrats, citing lower petrol and energy prices compared with the inflation peak of 19.7 per cent under former President Joe Biden. Inflation currently stands at 3 per cent, though food prices remain elevated.
India’s mango exports hold symbolic value in bilateral ties, with former President George W Bush lifting a ban in 2006. Mangoes were even mentioned in the joint statement issued during Trump’s February meeting with Prime Minister Narendra Modi, alongside cooperation in defence, nuclear energy and technology.
(Inputs from IANS)