Trump rolls back tariffs, US ends duties on key imports like coffee and fruits
New York (The Uttam Hindu) : US President Donald Trump, who caused a stir worldwide with his tariff bomb, has now taken a U-turn. In fact, he has reduced tariffs on food imports. Let's explore the impact this will have on India.
Trump's decision is aimed at controlling inflation and providing relief to the general public. India is also set to benefit from this. The White House announced on Friday that fruits and juices from tropical regions, tea, and spices are among the imports that will not be subject to reciprocal tariffs.
The White House factsheet also mentioned coffee and tea, cocoa, oranges, tomatoes, and beef. Trump imposed a 25 percent reciprocal tariff on imports from India. He also added a 25 percent punitive tariff on oil purchases from Russia.
Trump previously removed tariffs on generic drugs to control inflation. This decision significantly benefited India. India supplies 47 percent of generic drugs prescribed in the United States. Meanwhile, some of the increase in food prices was due to high tariffs, which directly impacted the public's pockets through importers and retailers.
In recent elections in New York, New Jersey, and Virginia, Democrats made inflation a major issue during their campaigns. Their focus on reducing inflation put more pressure on voters' pockets overall, helping them win.
Meanwhile, Trump has been preoccupied with international affairs, tariffs, and investments, and hasn't focused on the pressing issue of inflation for the general public. While reducing inflation in the US remains a political issue, India could benefit from exports of mangoes, pomegranates, and tea.
According to US media, inflation was a key issue for the public in the recent elections. According to September Consumer Price Index data, roasted coffee prices rose 18.9 percent, and beef and veal prices rose 14.7 percent.
The prices of spices and food items imported from India have increased by about 30 percent in Indian grocery stores.