The tea industry in India expresses concern over the higher US tariff

Leading industry body Indian Tea Association (ITA) said that the tea industry in India has expressed concern over the imposition of higher tariffs by US President Donald Trump, stating that the hike in levy is likely to have an impact on exports of the beverage to that country. It said the US is a significant market for Indian tea. According to the industry body, in 2024, the US had imported 17 million kilograms of tea from India, while the shipment to America stands at 6.26 million kilograms till May this year.

It said that the recent imposition of a 50% tariff on Indian goods would be a ‘limiting factor for exports of the beverage to the US’. The additional 25% tariff by the US on Indian products for the country's purchases of Russian oil came into effect on August 27, bringing the total amount of levy imposed on New Delhi to 50%.

The tea industry association said that the persistent decline in tea prices, influx of imports and export market volatility pose an existential threat to the tea industry in West Bengal and Assam. The ITA has already put forward its demand for the implementation of a minimum sustainable price (MSP) for tea to protect the interests of the industry and also to ensure its long-term sustainability.

The association also said orthodox tea production should be incentivised to meet the growing global demand for this variety. It has also demanded that the government ensure a level playing field in the export market to compete with Sri Lanka and Indonesia, as the governments of these two countries offer subsidies and other export incentives. It has also called for restraining low-quality tea imports and revision of trade pacts like the Indo-Nepal treaty.