US tariff hike raises concerns for Indian tea exports
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The Indian tea industry has voiced concern over the recent increase in import duties by the United States.
Industry representatives warned that the higher levy may affect the country’s tea shipments to the American market.
The Indian Tea Association (ITA) said the US remains a significant destination for Indian tea. In 2024, the US had imported 17 million kilograms of tea from India. Shipments till May this year have reached 6.26 million kilograms, according to the association.
The additional 25 per cent tariff imposed by the US on Indian products, linked to New Delhi’s purchase of Russian oil, took effect on August 27. With this, the total duty on Indian goods now stands at 50 per cent. The ITA noted that the new tariff would be a “limiting factor for exports of the beverage to the US.”
Apart from the tariff, the industry is facing several other challenges. Persistent decline in tea prices, rising imports, and export market instability have created an existential threat for growers in West Bengal and Assam.
The ITA has urged the government to implement a minimum sustainable price for tea to safeguard the sector and ensure its long-term viability. It has also called for incentives to boost orthodox tea production in order to meet growing international demand.
The association further sought a level playing field in exports, pointing out that Sri Lanka and Indonesia provide subsidies and other support to their tea exporters. In addition, the ITA asked the government to restrict low-quality tea imports and review trade agreements such as the Indo-Nepal treaty.
