Finance
US President Donald Trump has reduced taxes on food imports, citing “affordability” as a possible political force, and India’s mango, pomegranate, and tea exports may gain.
Tropical fruits and juices, tea, and spices are among the goods that will not face reciprocal taxes, the White House declared on Friday.
Other items featured in the White House Factsheet included coffee and tea, cocoa, oranges, tomatoes, and beef.
Trump put 25% reciprocal tariffs on Indian imports and an additional 25% penalty for buying Russian oil.
To combat inflation, Trump previously exempted generic drugs from tariffs, favoring India, which supplies 47% of generic pharmaceuticals prescribed in the US.
Some of the price increases in food products were caused by higher tariffs, which importers and merchants passed on to customers, in whole or in part.
In the recent elections in New York City, New Jersey, and Virginia, Democrats’ campaign focus on “affordability” — increased overall expenses that put a strain on voters’ wallets — helped them win.
While Trump has been preoccupied with international problems, tariffs, and investments, voters were more concerned with the simple matter of prices.
According to an NBC News poll issued this week, 63% of all registered voters believe Trump has failed to meet their expectations on the cost of living and the economy, with 30% agreeing.
Trump rejected the “affordability” problem as a “complete con job” by the Democrats, citing lower gasoline and energy prices and a greater inflation rate under former President Joe Biden, when it reached 19.7% at one point.
Although the galloping inflation during Biden’s tenure has been tamed, it is still trotting along, reaching 3% in September.
Tariffs, however, have caused some food products to rise in price.
According to the September Consumer Price Index, roasted coffee prices increased by 18.9%, while beef and veal prices increased by 14.7%.
Prices for spices and food imports from India have risen by around 30% in Indian grocery stores.
Mango imports from India hold a unique position in India-US ties, as former President George W Bush removed the prohibition with fanfare in 2006.
Mangoes, along with missiles, nuclear cooperation, and technological innovation, were included in a joint statement by Trump and Prime Minister Narendra Modi during their February visit.
“India also expressed appreciation for US measures taken to enhance exports of Indian mangoes and pomegranates to the United States”, the statement said.
Source: IANS
