The Indian tea industry has voiced concern over the U.S. government’s decision to impose higher tariffs on Indian goods, warning that exports of the beverage to America could take a hit.
According to the Indian Tea Association (ITA), the U.S. is among the key markets for Indian tea, importing 17 million kilograms in 2024. This year, shipments to the country have already touched 6.26 million kilograms till May. However, with Washington imposing an additional 25% levy—bringing the total tariff on Indian goods to 50%—exports are expected to slow.
The U.S. move, which came into effect on August 27, is linked to India’s continued purchase of Russian oil. Industry players fear the higher duties will act as a “limiting factor” for tea exports, especially at a time when the sector is already battling declining prices, rising imports, and volatile overseas demand.
The ITA has urged the government to step in with corrective measures, including the introduction of a minimum sustainable price (MSP) to safeguard producers and ensure long-term viability. It has also called for incentives to boost orthodox tea production, which is in growing demand globally.
Additionally, the association has pressed for a level playing field against competitors such as Sri Lanka and Indonesia, whose governments support exports through subsidies and incentives. It has also demanded stricter controls on low-quality tea imports and a revision of trade agreements, including the Indo-Nepal treaty, to protect domestic producers.
With the U.S. tariff hike adding fresh uncertainty, stakeholders warn that India’s tea sector—already under stress in major growing regions like West Bengal and Assam—faces heightened risks to both profitability and sustainability.