{"id":22984,"date":"2025-08-07T13:51:13","date_gmt":"2025-08-07T13:51:13","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=22984"},"modified":"2025-08-07T13:54:54","modified_gmt":"2025-08-07T13:54:54","slug":"ag-tariffs-call-into-india-at-50-athwart-booming-trade","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2025\/08\/07\/ag-tariffs-call-into-india-at-50-athwart-booming-trade\/","title":{"rendered":"Ag tariffs call into India at 50% athwart booming trade"},"content":{"rendered":"\n

India on August 6, 2025 earned 50% U.S.\u2019 import tariffs after rejecting a\u00a0promising deal<\/u><\/a>\u00a0in the interest of Ag and dairy. The two sub-sectors are currently on course to registering a bumper trade year with the United States.<\/p>\n\n\n\n

President Donald Trump of the United States pegged the decision to India\u2019s oil imports from Russia and traditionally high duties.<\/p>\n\n\n\n

If the tariff remains, it will be the highest on a traditional U.S.\u2019 ally, equaling Brazil\u2019s partial 50% and surpassing China\u2019s 30%. <\/p>\n\n\n\n

For India, the tiff is hedged on agriculture because farmers pressured their government to refuse any booby trap.<\/p>\n\n\n\n

Before July 8, 2025 amid free trade agreement speculations, farmers\u2019 groups such as Kerala\u2019s Samyukta Kisan Morcha (SKM) protested. <\/p>\n\n\n\n

Prime Minister Narendra Modi on August 6 fired back on their behalf, saying that \u201cIndia will never compromise.<\/u><\/a>\u201d<\/p>\n\n\n\n

The Global Trade Research Initiative now fears a slash in India\u2019s $86 billion+ exports to the U.S. by 50%, reports the New York Times<\/u><\/a>. <\/p>\n\n\n\n

Steady Agricultural Exports<\/strong><\/strong><\/h3>\n\n\n\n

And yet, these same exports rose to $3.4727 billion in the first half of 2025, 24.1% above 2024\u2019s.<\/p>\n\n\n\n

Similarly, Ag imports by India from the United States for half-year 2025 gained 48.1%, year-on-year, to $1.1358 billion. <\/p>\n\n\n\n

The Indian Express<\/u><\/a> writes that if the export pace continues, annual bilateral agricultural trade might reach $7.7 billion. <\/p>\n\n\n\n

Leading agricultural exports by New Delhi to Washington include dairy, fabrics and seafood while those from stateside feature tree nuts. <\/p>\n\n\n\n

In late 2023, the United States got headway after India cut hefty tariffs on live ducks<\/u><\/a>, lowering previously high import prices. <\/p>\n\n\n\n

The current redline between the two sides remains ethanol, dairy and genetically modified foods. <\/p>\n\n\n\n

India imported $420 million in ethanol shipments for medicinal uses from its ally in 2024, but refused biodiesel overtures.<\/p>\n\n\n\n

The U.S. has also met with a dead end in shipping GM maize and oilseeds to India, but vegetable oil trade is thriving. Like other Ag sectors, soybean oil exports from stateside to India is at a current high. On May 31, 2025, Delhi gave the imports a shot in the arm by cutting tariffs by almost half, to 16.5%. <\/p>\n\n\n\n

The United States also wants cheaper dairy trade with Delhi but farmers won\u2019t hear of it, another sticking point.<\/p>\n\n\n\n

Finally, the political point of oil imports from Russia on account of its war with Ukraine has lately come up. PM Modi on August 6 accused Western nations, without naming them, of also importing Russia\u2019s products<\/u><\/a> such as uranium.  <\/p>\n\n\n\n

Where further negotiations are heading is unknown for now, especially for agriculture. As such, the next statistics array key agricultural goods between the two sides with their respective tariffs.\u00a0<\/p>\n\n\n\n

India-United States Ag Tariffs\u00a0Statistics\u00a0<\/strong><\/h2>\n\n\n\n

Mutual tariffs stand in the middle of the India-United States bilateral trade value totaling $190 billion <\/u><\/a>in 2024-25. In 2023, the value was at $126.9 billion, per India\u2019s Parliament,<\/u><\/a> out of which agricultural bilateral trade absorbed $7 billion<\/u><\/a>. Yet, the vision to realize $0.5 trillion<\/u><\/a> in trade by 2030 hangs in the balance due to ever-increasing tariffs. These exacerbated on August 6, 2025 when the U.S. imposed 50% duty<\/u><\/a> on all India goods. <\/p>\n\n\n\n

How\u00a0high are Ag tariffs by the U.S. on India?<\/strong>\u00a0<\/p>\n\n\n\n

The U.S. imposed 50% tariffs on India\u2019s goods, including agriculture, in early August 2025. This was partly in\u00a0order to tackle a 2025 bilateral trade imbalance of\u00a0$45.6 billion\u00a0<\/u><\/a>that favors India.\u00a0\u00a0<\/p>\n\n\n\n

Which agricultural produce\/products from the U.S. does India tax heavily<\/strong>? <\/p>\n\n\n\n

The table below, courtesy The Global Statistics<\/u><\/a>, the Indian Express <\/u><\/a>and the USDA<\/u><\/a>, arrays U.S.\u2019 Ag exports that India taxes.<\/p>\n\n\n\n

Ag Product<\/strong><\/td>Tariff Rate<\/strong><\/td><\/tr>
Textile Fibers <\/td>50% [2025]<\/td><\/tr>
Pecans<\/td>30% [previously 100% before 2023]<\/td><\/tr>
Chickpeas<\/td>30% [previously 60% in 2018]<\/td><\/tr>
Ducks and Turkeys<\/td>5% [previously 30% before 2023]<\/td><\/tr>
Soybean oil<\/td>16.5% [previous over 28%]<\/td><\/tr><\/tbody><\/table>
Fig:\u00a0tariffs by India\u00a0<\/em>for key agricultural imports from the U.S.\u00a0<\/em><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

India on August 6, 2025 earned 50% U.S.\u2019 import tariffs after rejecting a\u00a0promising deal\u00a0in the interest of Ag and dairy. The two sub-sectors are currently on course to registering a bumper trade year with the United States. President Donald Trump of the United States pegged the decision to India\u2019s oil imports from Russia and traditionally…<\/p>\n","protected":false},"author":3,"featured_media":19797,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"\nAg tariffs call into India at 50% athwart booming trade - Selina Wamucii | Food & Agriculture News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.selinawamucii.com\/news\/2025\/08\/07\/ag-tariffs-call-into-india-at-50-athwart-booming-trade\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ag tariffs call into India at 50% athwart booming trade - Selina Wamucii | Food & Agriculture News\" \/>\n<meta property=\"og:description\" content=\"India on August 6, 2025 earned 50% U.S.\u2019 import tariffs after rejecting a\u00a0promising deal\u00a0in the interest of Ag and dairy. 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