Trump’s tariff exemptions for 200 goods: How agro exports will benefit from US move

After imposing sweeping tariffs, the Donald Trump medication has softened its stance arsenic prices of basal commodities person gone up successful the US. Last week Trump announced that helium volition beryllium doing distant with tariffs connected implicit 200 nutrient items.

According to a White House Executive Order, that was issued connected November 12, 2025, coffee, tea, tropical fruits, effect juices, cocoa, spices, bananas, oranges, tomatoes, beef and definite fertilizers from the April 2 reciprocal tariff authorities person been excluded from the list. There are increasing worries successful the US that Trump’s tariffs volition disrupt proviso chains and rise prices of respective indispensable commodities substantially.

The exemptions took effect connected November 13. These goods are either not produced successful capable quantities successful America oregon beryllium connected clime conditions the US cannot replicate. Trump’s latest move, though aimed astatine keeping ostentation successful check, whitethorn payment Indian exporters of cultivation commodities who person faced a 50% tariff complaint since precocious August.

Importantly, it is yet unclear whether the exemption from tariffs for India volition beryllium conscionable 25% oregon a afloat 50% which includes the 25% penal tariffs for crude lipid imports from Russia.

How India has reacted to Trump’s move

The Commerce Ministry has said that India stands to payment from the US determination to retreat reciprocal tariffs connected prime cultivation products, including tea, java and spices. The Commerce Ministry has indicated that whilst these changes use universally to each trading partners, Indian exporters present person adjacent competitory opportunities - a much level playing tract which had been denied with the 50% tariffs.India’s yearly exports of the commodities that person been exempted from the reciprocal tariffs stood astatine implicit $1 cardinal - this includes fruits and nuts, processed foods, spices, beverage and coffee, indispensable oils, and rootlike and edible roots."Now our exports volition person a level playing field," Joint Secretary successful the Department of Commerce Darpan Jain said during a property briefing.

How overmuch volition India payment from Trump’s tariff exemptions?

India’s cultivation exporters basal to gain, with experts believing that this could assistance reconstruct request to erstwhile levels.Whilst EU and Vietnamese suppliers faced duties of 15-20%, Indian exporters of tea, coffee, spices and cashew nuts faced steeper challenges erstwhile Trump accrued tariffs up to 50% connected circumstantial Indian products, including the 25% punishment complaint from end-August connected India's Russian lipid imports.According to Ajay Sahai, manager wide of the Federation of Indian Export Organisations (FIEO), exports worthy betwixt $2.5 cardinal and $3 cardinal volition payment from these tariff exemptions."This bid opens abstraction for premium, speciality and value-added products," helium said. "Exporters who displacement towards higher-value segments volition beryllium amended protected from terms pressures and tin pat rising user demand,” helium told Reuters.Agneshwar Sen, Trade Policy Leader, EY India told TOI, “Dropping the reciprocal tariffs connected definite cultivation products by the US, is simply a summation for Indian exporters. It cuts landed costs, making Indian cultivation goods terms competitory against suppliers from Latin America and Southeast Asia.”According to Agneshwar Sen, the US retail and food-processing sectors volition present get an accidental to trim their store level prices connected nuts, processed foods, spices, beverage and coffee, indispensable oils, and rootlike oils.“This US enactment is simply a determination successful the close absorption to finalise the Bilateral commercialized (BTA) deal. As the Commerce curate has indicated that a just effect for Indian agriculture is 1 of India's superior demands.

It volition beryllium utile for India to question hold of this reciprocal tariff revocation adjacent connected marine products which unsocial was astir $2 cardinal past year,” helium added.

However, immoderate experts are of the presumption that Latin American, African and ASEAN nations are expected to spot greater benefits successful trade.According to an investigation by Global Trade Research Initiative (GTRI) laminitis Ajay Srivastava, for the tariff-exempt products identified successful the order, India contiguous supplies lone $548 cardinal of America’s $50.6-billion import handbasket - reflecting a constrictive export footprint dominated by a fewer winners.

“The displacement successful US tariff argumentation could marginally fortify India’s competitory presumption successful spices and niche horticulture, but the broader gains volition accrue chiefly to large Latin American, African, and ASEAN workplace exporters unless India expands scale, builds cold-chain capacity, and diversifies its cultivation export basket,” says GTRI.Exporters stay cautious astir imaginable benefits, citing elevated shipping expenses, fierce rivalry from Vietnam and Indonesia, alongside stringent US prime standards arsenic limiting factors."Tariff alleviation is important, but marketplace betterment besides depends connected logistics and our quality to lucifer prices," 1 exporter said.

India’s exports to the US: Impact of Trump’s 50% tariffs

Interestingly, the October information reveals that portion India’s exports to the US person dropped year-on-year, they person accrued month-on-month compared to September 2025. Exports to the United States reached $6.3 cardinal successful October, showing a 14.5% summation from September's $5.5 billion.

This marks the archetypal monthly maturation since May, contempt the ongoing 50% tariff.

Whilst October 2025 exports of $6.3 cardinal amusement an 8.6% diminution compared to October 2024's $6.9 billion, the monthly betterment from September is encouraging according to GTRI.Despite October's improvement, India's exports to the US saw a 28.4% simplification betwixt May and October.India’s exports to the US dropped by astir 12% compared to the erstwhile twelvemonth successful September, reaching $5.43 cardinal pursuing the monolithic tariff hike.

Agricultural exports from India, projected to lend $5.7 cardinal to the nation's full US exports of $87 cardinal successful 2024, experienced notable impact.Government officials progressive successful commercialized and cultivation export regulations indicated that these relaxations successful tariffs by the Trump medication nonstop an encouraging awesome for existent US–India commercialized negotiations and mightiness trim export constraints caused by this year's work increases.GTRI has besides said that the US nary longer has immoderate lawsuit to proceed with the 25% penal tariffs connected India for its crude lipid imports from Russia. India has substantially stepped up procurement of petroleum products from the US, portion reducing its crude lipid imports from Russia. GTRI notes that Trump has himself admitted that India’s crude imports from Russia person travel down drastically.

“India is present 1 of the fewer large economies sharply expanding its purchases of US lipid and LPG. With nary remaining strategic, economic, oregon governmental rationale for the surcharge, Washington should retreat the 25% tariff instantly alternatively than necktie its removal to a protracted commercialized deal. Such a determination would show that US argumentation remains principled, responsive, and just to partners that person acted connected American concerns,” says GTRI.Commerce Minister Piyush Goyal precocious said immoderate ‘good news’ connected India-US commercialized woody would beryllium heard erstwhile the presumption of the woody are ‘balanced, just and equitable’.