U.S. Tariffs on India: Agricultural and Processed Food Exports Worth Over $5.8 Billion at Risk
31 July 2025, New Delhi: The recent announcement by U.S. President Donald Trump imposing a 25% tariff on Indian goods starting August 1 is expected to significantly impact India’s agricultural and processed food exports. According to the Directorate General of Commercial Intelligence and Statistics (DGCIS), India’s exports in these segments during 2024–25 reached a total value of USD 5.81 billion, covering over 1.5 million metric tonnes of goods.
While the U.S. is not the sole market for these exports, the tariff move threatens to disrupt longstanding trade routes and pricing dynamics for high-value items like Basmati rice, spices, and marine products, which are key components of India’s agri-export portfolio.
Top Indian Agri Exports (2024–25): Value and Quantity
| Product Category | Export Value (USD Million) | Export Quantity (MT) |
|---|---|---|
| Total Agricultural & Processed Food Exports | 5,815.68 | 1,520,957.74 |
| Marine Products | 2,681.19 | 342,534.27 |
| Spices | 654.71 | 110,836.47 |
| Basmati Rice | 337.10 | 274,213.00 |
| Misc. Processed Items | 251.93 | 0.00 |
| Dairy Products | 205.32 | 86,829.91 |
| Ayush & Herbal Products | 188.55 | 27,816.53 |
| Processed Fruits & Juices | 161.42 | 96,521.96 |
| Cereal Preparations | 161.38 | 75,002.00 |
| Castor Oil | 119.65 | 73,433.54 |
| Processed Vegetables | 112.83 | 58,375.68 |
| Cocoa Products | 111.92 | 8,788.45 |
| Guargum | 102.99 | 55,440.00 |
| Tea | 92.95 | 19,137.06 |
| Coffee | 81.89 | 6,688.81 |
| Pulses | 66.18 | 39,074.00 |
| Milled Products | 65.22 | 51,154.01 |
| Tobacco (Manufactured) | 60.82 | 0.00 |
| Non-Basmati Rice | 54.64 | 61,915.00 |
Spotlight on Basmati Rice and Spices
Two of India’s most prominent export items—Basmati rice and spices—stand to lose competitive advantage in the U.S. market due to the new tariffs. Basmati, which fetched USD 337.10 million in value and over 274,000 MT in volume in 2024–25, has traditionally held a premium position in global markets. Similarly, Indian spices, valued at over USD 654 million, may now face pricing pressures from competing exporters.
Marine and Dairy Segments Also Vulnerable
Marine products—India’s single largest export segment—account for nearly USD 2.68 billion and over 342,000 MT in shipment volume. The U.S. is a critical buyer in this category, and a 25% tariff could destabilize supply chains and lead to a potential redirection of trade flows to other markets like Japan, EU, or the Middle East.
Dairy products and processed fruits, collectively contributing over USD 366 million, are also expected to experience lower margins or even potential rejections due to higher landed costs post-tariff.
Implications for India’s Trade Relations
While the U.S. has not yet clarified whether all the items listed above fall under the tariff slab, the general announcement of a 25% levy sends a strong signal. For Indian exporters, this creates an urgent need to diversify markets and push for bilateral trade negotiations to protect key agricultural sectors.
As the August 1 deadline approaches, industry stakeholders, farmer cooperatives, and policy planners are closely watching for further updates and clarifications. With India’s agri-exports playing a pivotal role in rural livelihoods and farm incomes, any long-term disruption could have far-reaching consequences.
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