U.S. tariffs prone to hit Indian tea exports, says Indian Tea Association

The United States’ 50% tariffs on imports from India have come into impact, and the Indian Tea Industry has stated the transfer is prone to have an effect on Indian tea exports to the U.S.

According to the Indian Tea Association (ITA), the U.S. is a big marketplace for Indian tea, accounting for a substantial share of exports. Last 12 months, India’s tea exports to the U.S. stood at round 17 million kg. This 12 months, until May 2025, exports to the U.S. had been at 6.26 million kg.

“The current imposition of a 50% tariff on Indian items is prone to influence Indian tea exports to the U.S. Any improve in price can’t be absorbed by the availability chain provided that the producers are already working on very skinny margins,” the ITA stated in a press release on Monday.

In the black tea phase, the first suppliers to the U.S. are India, Sri Lanka, Argentina and Malawi, the ITA added.

The affiliation famous that contemplating the robust demand for Assam and Darjeeling tea within the U.S. market, shoppers could also be prepared to soak up greater costs. It additionally emphasised the necessity to broaden the nation’s export footprint.

“Given the varied unfold of Indian exports throughout 21 key nations that account for 88% of whole exports mixed with the worldwide attract of Assam and Darjeeling varieties, [this] units the stage for enlargement into contemporary territories, thereby broadening the nation’s tea export footprint,” the assertion added.

The ITA has additionally sought measures to strengthen the export potential of Indian tea, together with consideration of a devoted freight hall to scale back cargo prices. “In order to cater to the rising world demand for orthodox teas and proper the imbalances within the product combine it’s crucial that the Government reinstates the orthodox tea subsidy with a better outlay,” the ITA stated.

On the nation’s total tea exports, the ITA stated the image was blended. North India witnessed important progress of 8.74% in amount and 22.33% in worth from January to May 2025 in contrast with the identical interval in 2024. Consequently, the unit worth for North Indian tea exports rose by 12.50% to ₹308.22.

In distinction, South India noticed a decline of 15.42% in amount, though the worth elevated by 2.59% as a result of a 21.29% rise in unit worth to ₹261.37.

“Overall, all-India tea exports elevated by 15.09% in worth and 16.85% in unit worth, regardless of a marginal decline of 1.51% in amount,” the ITA assertion added.