NextFin news, On this Wednesday, September 17, 2025, in London, Tom Athron, CEO of British retailer Fortnum & Mason, reported that tariffs imposed by former US President Donald Trump have negatively affected Indian tea exports to the United States. These tariffs, including a 50% levy on Indian goods effective since late August, have increased prices and disrupted supply chains.
The tariffs stem from US trade policies initiated under the Trump administration, aimed at penalizing countries like India for their procurement of Russian oil and other geopolitical reasons. The Indian Tea Association highlighted that the US is the fourth largest importer of Indian tea by volume, importing 17 million kilos in 2024, with a value of $87.77 million in the 2024-25 fiscal year.
Tom Athron explained that stricter country of origin rules and the end of 'de minimis' exemptions have forced price increases. He noted that these tariffs have made it difficult for tea businesses to maintain competitive pricing in the US market.
Indian exporters and US tea businesses have expressed concerns about the tariffs' impact. Michael Harney, vice president of Harney & Sons, stated that India is their second-largest tea source and that the 50% tariff poses significant challenges. Anjali Bhargava, founder of Anjali’s Cup, warned that the tariffs primarily harm American small businesses and consumers by forcing difficult choices between quality and business survival.
The tariffs have also caused some US buyers to pause orders, while Indian exporters seek alternative markets such as China and Europe. India has signed a trade agreement with the UK and is negotiating a free trade agreement with the European Union to diversify export destinations.
Legal uncertainty surrounds the tariffs, as a US appeals court ruled most Trump-era tariffs illegal but allowed them to remain until mid-October pending Supreme Court review. An executive order issued on September 8 exempts goods not sufficiently produced in the US, including coffee and tea, but only for countries with established trade agreements, leaving India’s status unclear.
These developments have created uncertainty in the US tea market, affecting consumer confidence and demand. The Indian government is also providing support to exporters to mitigate the tariffs' impact, while trade negotiations with the US remain stalled.
Explore more exclusive insights at nextfin.ai.