Tariffs on coffee, tea and fruits have been reduced in the US. How much will India benefit from Trump's decision?

News Topical, Digital Desk : Amid rising inflation and consumer complaints in the US, President Donald Trump has taken a major decision. He has reduced tariffs on food imports. This could benefit India's mango, pomegranate, and tea exports.

In fact, the tariffs imposed by Trump were directly impacting consumers. Inflation was a major issue in the recent mayoral and gubernatorial elections in New York, America's largest city. Trump suffered a crushing defeat in these elections. Following this, Trump has decided to remove tariffs on dozens of agricultural products, including beef, coffee, and fruit.

What benefit did India get?

The White House announced Friday that tropical fruits and juices, tea, and spices are among the imports that will not be subject to reciprocal tariffs. Other items listed in a White House factsheet as having reduced tariffs were coffee and tea, cocoa, oranges, tomatoes, and beef.

Trump imposed a 25 percent reciprocal tariff on imports from India and added a 25 percent punitive duty on the purchase of Russian oil. However, to control inflation, Trump previously exempted generic drugs from duty, significantly benefiting India, which supplies 47 percent of generic drugs prescribed in the United States. Reducing food imports will also boost exports of mangoes, pomegranates, and tea.

Trump did not live up to expectations.

In an NBC News poll released this week, 63 percent of registered voters said Trump hadn't met their expectations on the cost of living and the economy, and 30 percent of Republicans agreed.

Trump dismissed the "affordability" issue as a "complete hoax" perpetrated by Democrats and pointed to lower gasoline and energy prices and a higher inflation rate under former President Joe Biden, when it reached 19.7 percent at one point. While the rapid inflation rate under Biden has been debated, it is still rising steadily, hitting 3 percent in September. But prices of some food products have risen due to tariffs.

30 percent increase in import prices

According to September consumer price index data, roasted coffee prices rose 18.9 percent, and beef and veal prices rose 14.7 percent. Prices of spices and food imports from India rose by nearly 30 percent in Indian grocery stores.

Export of mango and pomegranate is likely to increase

It is worth noting that mango imports from India hold a special place in India-US relations after former President George W. Bush lifted tariffs. Along with missiles, nuclear cooperation, and technological innovation, mangoes also found a place in the joint statement issued during Trump and Prime Minister Narendra Modi's visit in February. The statement said India also appreciated the steps taken by the US to increase exports of Indian mangoes and pomegranates to the US. 

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