Indian tea industry has raised their concern over the imposition of 50 per cent US tariffs by Donald Trump. Sharing their concern over higher US tariff Indian tea exporters said the increase US Tariff is likely to have an impact on the exports of Indian tea to the US. According to the tea industry experts, the decision will have a direct impact on tea exports. Last year, India exported 17 million kilograms of tea to America, however by May 2025, the export figures of tea have come down to 62.6 lakh kilograms. Notably, America is an important market for Indian tea.
US Tariffs Harm Tea Industry
Indian Tea Association (ITA) expressing their concern said that decline in tea prices, influx of imports and export market amid US Tariffs pose an existential threat to the tea industry in West Bengal and Assam. ITA has already requested Indian government to intervene in the matter and implement a minimum sustainable price (MSP) for tea to protect the interests of the industry and to ensure its long-term sustainability.
Owing to the high demand of Indian tea in the US Market, ITA however has also said that despite the increased US Tariffs on Indian products American consumers will pay a higher price for Indian tea. Notably, American tea consumers possess a strong demand for Assam and Darjeeling tea.