The Indian tea industry has voiced concern over the United States’s higher tariffs on Indian products, warning that the move could significantly impact exports of the beverage to the American market.
The Indian Tea Association (ITA), a leading industry body, highlighted that the U.S. is an important buyer of Indian tea. In 2024, India exported 17 million kilograms of tea to the United States, with shipments reaching 6.26 million kilograms up to May this year.
The new measure, introduced by the administration of U.S. President Donald Trump, adds an additional 25% tariff on Indian goods in response to New Delhi’s purchase of Russian oil. This surcharge, which came into effect on August 27, raises the total levy on Indian products to 50%.
The ITA described the 50% tariff as a limiting factor for exports of the beverage to the U.S., stressing that such restrictions could weaken India’s competitiveness in a market that has historically been crucial for its tea exports.
Beyond tariffs, the industry continues to grapple with other challenges, including declining tea prices, an influx of low-quality imports, and volatility in global export markets. These issues, the association warned, are posing an existential threat to tea producers in key growing regions such as West Bengal and Assam.
To safeguard the sector, the ITA has reiterated its demand for the implementation of a minimum sustainable price (MSP) for tea, which it argues is essential to ensure both industry protection and long-term viability. The association also called for greater support to boost orthodox tea production, citing growing international demand for this variety.
Additionally, the ITA urged the government to create a level playing field for Indian exporters to compete with countries such as Sri Lanka and Indonesia, which provide subsidies and other incentives to their tea industries. The body further pressed for measures to curb imports of inferior quality teas and review existing trade agreements, including the Indo-Nepal treaty, which it said undermines domestic producers.
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