Rocketing Prices Cause Trump To Tweak Tariffs; India Tea, Fruits May Benefit

WASHINGTON, DC -US President Donald Trump has cut tariffs on food imports as ‘affordability’ emerges as a potential political force, a move from which India’s mango, pomegranate, and tea exports may benefit.

Tropical fruits and juices, tea, and spices were among the imports that will not be hit by reciprocal tariffs, the White House announced on November 14.

Other items mentioned in the White House Factsheet included coffee and tea, cocoa, oranges, tomatoes, and beef.

Trump had previously imposed 25 per cent reciprocal tariffs on imports from India and added punitive 25 per cent for buying Russian oil.

However, in an effort to contain inflation, Trump earlier exempted generic medicines from tariffs, benefiting India, which supplies 47 per cent of generic medicines prescribed in the US.

Some of the increases in food product prices were a result of the higher tariffs, which were passed on, in whole or in part, by importers and retailers to consumers.

In the recent elections in New York City, New Jersey, and Virginia, the Democrats’ campaign focus on ‘affordability,’ the higher costs overall straining voters’ budgets, contributed to their victories.

While Trump has been engrossed in international affairs, tariffs, and investments, voters were concerned with the issue of prices.

In an NBC News poll released this week, 63 per cent of all registered voters said that Trump had fallen short of their expectations on the cost of living and the economy, and 30 per cent of Republicans concurred.

Trump dismissed the ‘affordability’ issue as a “complete con job” by the Democrats. However, some food products have recorded higher prices fueled by tariffs.

Roasted coffee prices rose by 18.9 per cent, and beef and veal by 14.7 per cent, according to the September Consumer Price Index data.

The prices of spices and food imports from India are up by about 30 per cent in Indian grocery stores.

India’s mango imports have a special place in India-US relations after former President George W. Bush lifted the ban with much fanfare in 2006. (IANS)