US Removes 25% Tariffs On Indian Agricultural Products: Impact On Exports And USA–India Flight Prices

The US has reversed executive order whereby it has scrapped 25% tariff on agricultural items of India, covering 254 products, which includes the 229 agricultural products. The order reversal has paved the way towards a new threshold with possibilities of lowering the cost of international flights, which originate from India and end in the USA. Similarly, all the India bound flights from the USA are expected to come down.  

The scrapping of tariffs will result in the reduction of coffee, tea, tropical fruits, nuts, spices and many other types of commodities. The order was put into place on November 13 and this exemption results from the mounting pressure on the Trump administration to battle out an overwhelming rise in consumer prices back in the USA.

The evidence is that India is a major exporter of spices excluding Thyme to the USA and this export is worth $358 million. The exports also include many varieties of tea and coffee products totaling more than $82 million. It is a well-known fact that the Indian market is a noteworthy source of cashew exports, spices, and tea. The primary spices exported to the USA comprises pepper, capsicum, ginger-turmeric-curry spices, cumin seed categories, cardamom, tea, cocoa beans, cinnamon, and cloves.

The US exemption will bring down the cost of spices and agricultural products back to normal level and this would increase international exports. In all of these adjustments, the airfares from the USA to India flights and back will witness a plummet, leading to ease in the air travel between the nations between the two democracies.

 Earlier, high tariffs enforced by the USA administration on India had jolted Indian aviation, as much as it led to nose diving of cargo movement. However, with this new development, there are high expectations that the cargo movement will be streamlined and the Indian exporters will benefit greatly.

Impact on Bilateral Trade and Future Airfare Trends

This policy reversal is also expected to strengthen bilateral trade relations, as reduced export costs can boost demand for Indian agricultural goods across American markets. With increased cargo flow and stabilized pricing, airlines may operate more efficiently, potentially leading to better freight connectivity and long-term reductions in operational costs. This shift may indirectly contribute to more competitive airfares on both passenger and cargo flights, creating a positive ripple effect for travelers, exporters, and the aviation sector as a whole.