Why would a president who famously raised tariffs suddenly decide to remove them? The answer lies in rising grocery bills and angry voters.
When voters feel the pinch at grocery stores, even the most tariff-happy politicians suddenly discover the virtues of free trade.
In late 2025, Trump’s administration slashed tariffs on over $1 billion worth of Indian agricultural exports from a hefty 50% down to zero. This dramatic turnaround affects more than 250 food items that Americans buy regularly.
The tariff cuts cover everything from the spices that make your curry flavorful to the tea in your morning cup. Indian exports of coffee, fruits, nuts, essential oils, and cocoa-based products now enter the US market without the previous tax burden. Think of tariffs like a parking fee that makes shopping more expensive. Remove the fee, and suddenly everyone wants to shop there again.
For Indian farmers, this news feels like winning the lottery. Exporters of spices, tea, coffee, cashews, fruits, and vegetables expect demand to bounce back quickly. The tariff relief could boost India’s farm exports to America by $2.5 to $3 billion, which translates to roughly 22,000 to 26,000 crore rupees. That’s serious money for rural communities.
The timing isn’t coincidental. American consumers have been complaining about high food prices, putting political pressure on the Trump administration. When your grocery bill keeps growing, you start looking for someone to blame. Smart politicians notice these complaints and act accordingly.
Previously, Trump had raised these tariffs in April 2025, citing trade imbalances and national security concerns. But the policy backfired domestically. India’s export value to the US dropped 12% to $5.43 billion by September 2025, and American consumers felt the pinch at checkout counters. The global market crash that followed the initial tariff announcement demonstrated the far-reaching economic consequences of such aggressive trade policies.
Not all products will benefit equally. Spices and specialty items where India dominates will see bigger gains than products like tomatoes or bananas where Indian presence remains limited. Some tariffs also remain on other Indian imports for security reasons, creating a complex trade landscape. Meanwhile, the administration imposed 25% on India for specific non-agricultural trade issues, showing the selective nature of these policy adjustments.
This reversal represents more than just trade policy. It shows how domestic politics and international commerce intersect, especially when voters start feeling economic pain in their daily lives. Indian exporters can now access 30+ global markets through major trading platforms as they expand their international reach beyond just the US market.
