US Tariff Hike Threatens Indian Tea Exports

The United States has imposed a steep 50% tariff on Indian goods, raising alarm within India’s tea industry. The US is India’s fourth-largest tea export market by volume and the second by value. In 2024–25, it imported 17.54 million kg of tea worth USD 87.77 million.

Industry stakeholders fear the tariff hike could significantly impact export revenues, compounding existing challenges. Auction prices have already fallen by ₹32–₹74, squeezing margins for producers. The Indian Tea Association (ITA) has called for urgent measures, including the implementation of a Minimum Sustainable Price (MSP) and stricter import regulations, to safeguard domestic producers from further losses.

Experts warn that without intervention, the tariff could not only weaken India’s tea exports but also destabilize the livelihoods of thousands dependent on the sector.