US Tariff Relief: Trump's Exemption Boosts Indian Farmers and Exports
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In a significant move, US President Donald Trump has exempted several food and agricultural items from reciprocal tariffs, offering a much-needed lifeline to Indian agricultural exporters. According to analysts, this decision could help revive lost demand and boost exports worth up to $3 billion. The exempted products include coffee, tea, tropical fruits and juices, cocoa, spices, bananas, oranges, tomatoes, beef, and fertilizers, many of which are key Indian exports to the US. The exemption is expected to benefit Indian farmers and exporters of tea, coffee, cashew, and fruits and vegetables. 'This order opens space for premium, speciality and value-added products,' said Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), as quoted by Reuters. 'Exporters who shift towards higher-value segments will be better protected from price pressures and can tap rising consumer demand.' While some officials see this move as a positive sign in ongoing trade talks between India and the US, others caution that India's farm exports to the US may not see significant gains, relying mainly on high-value spices and niche products. 'The tariff shift would marginally strengthen India's position in spices and niche horticulture and help revive some lost U.S. demand after the tariff hikes,' said Ajay Srivastava, founder of the Global Trade Research Initiative.
