US-India trade deal could remove tariffs on American fruits

USA/INDIA – The United States and India have reached a new trade agreement that could see Indian tariffs on US fresh produce cut to zero.

The deal, announced by the leaders of both countries, signals a significant shift in agricultural trade relations.

“We agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 per cent to 18 per cent. They will likewise move forward to reduce their tariffs and non-tariff barriers against the United States, to zero,” US President Donald Trump said in a social media post on 3 February.

Indian Prime Minister Narendra Modi echoed the announcement on his own social media, stating, “Delighted that made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”

US Trade Representative Jamieson Greer told CNBC that tariffs on key agricultural products are expected to fall to zero. “For a variety of things – tree nuts, wine, spirits, fruits and vegetables – they’re going down to zero. This is a big win,” Greer said.

He noted India will retain some protections in certain sectors but affirmed that the US will continue negotiating market access.

Analysts say the agreement could benefit US exporters of fruits such as apples, grapes, and citrus, as well as nuts like almonds and walnuts. The elimination of tariffs could improve price competitiveness in the Indian market, which currently applies duties of up to 18 per cent (approx. US$3.50 per kg on certain fruits).

South African fruit exports face continued tariffs

While the US-India deal shows promise for American exporters, South African fruit exporters continue to face high US tariffs despite the one-year extension of the African Growth and Opportunities Act (AGOA).

The South African Table Grape Industry body (Sati) welcomed the AGOA extension but warned that US tariffs remain a burden.

“The extension is good news and a step in the right direction. However, the 30 per cent tariff announced by President Trump in 2025 remains in place and AGOA will not override this,” Sati said.

The group explained that grapes shipped to the US now pay a total tariff of 30 per cent (approx. US$4.20 per kg), unchanged from last year’s rates.

The US-India deal highlights a contrasting trade approach, offering immediate benefits for US producers while African exporters must navigate ongoing tariffs. Both developments underscore the complex nature of international agricultural trade and the importance of bilateral negotiations.

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