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

The United States’ 50% tariffs on imports from India have come into effect, and the Indian Tea Industry has said the move is likely to affect Indian tea exports to the U.S.

According to the Indian Tea Association (ITA), the U.S. is a significant market for Indian tea, accounting for a considerable share of exports. Last year, India’s tea exports to the U.S. stood at around 17 million kg. This year, till May 2025, exports to the U.S. were at 6.26 million kg.

“The recent imposition of a 50% tariff on Indian goods is likely to impact Indian tea exports to the U.S. Any increase in cost cannot be absorbed by the supply chain given that the producers are already operating on very thin margins,” the ITA said in a statement on Monday.

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

The association noted that considering the strong demand for Assam and Darjeeling tea in the U.S. market, consumers may be willing to absorb higher prices. It also emphasised the need to broaden the country’s export footprint.

“Given the diverse spread of Indian exports across 21 key countries that account for 88% of total exports combined with the global allure of Assam and Darjeeling varieties, [this] sets the stage for expansion into fresh territories, thereby broadening the country’s tea export footprint,” the statement added.

The ITA has also sought measures to strengthen the export potential of Indian tea, including consideration of a dedicated freight corridor to reduce shipment costs. “In order to cater to the growing global demand for orthodox teas and correct the imbalances in the product mix it is imperative that the Government reinstates the orthodox tea subsidy with a higher outlay,” the ITA said.

On the country’s overall tea exports, the ITA said the picture was mixed. North India witnessed significant growth of 8.74% in quantity and 22.33% in value from January to May 2025 compared with the same period in 2024. Consequently, the unit price for North Indian tea exports rose by 12.50% to ₹308.22.

In contrast, South India saw a decline of 15.42% in quantity, although the value increased by 2.59% due to a 21.29% rise in unit price to ₹261.37.

“Overall, all-India tea exports increased by 15.09% in value and 16.85% in unit price, despite a marginal decline of 1.51% in quantity,” the ITA statement added.