India

The $40 Taste of Home: Diaspora Demand Drives Indian Mango Surge

Tue, 12 May 2026 22:49:35 GMT

For the Indian diaspora in the U.S., a box of mangoes isn’t just a produce purchase; it’s a $40 plane ticket home. While Latin American varieties dominate the mainstream market, Kaushal Khakhar, CEO of India’s Kay Bee Exports, says the skyrocketing demand for Indian alphonso and kesar varieties proves that emotional heritage and superior flavor profiles can bypass rational pricing logic.

Earlier this month, the Wall Street Journal reported premium varieties of Indian mangoes, such as alphonso and kesar, are retailing in the U.S. for $50 to $60 per box of 10 to 12 mangoes — putting the stone fruit on a price point on par with lobster tails.

“There was a fair bit of exaggeration in those comments,” says Khakhar, who told The Packer that while the true price is closer to $40 per box of 10 to 12 mangoes, what isn’t an exaggeration is the U.S.-based Indian community’s appetite for a taste of home.

“I think the emotion of Indian consumers has been very well captured so that there is no denying the Indian diaspora feels that this is their way to connect to their homeland, and the flavor of the mango is way different and superior to other mangoes,” says Khakhar. “So, I think in that sense, there is a definite craving for Indian mangoes, and that’s why … they are happy to pay $40 a case [of 10 to 12] for the Indian mango.

“Does it mean the flavor is four times superior?” he continues. “No, so it’s not a rational purchase. It is more an emotional purchase. And the Indian diaspora is a very affluent community. They can spend more for good food. And this is one thing that they can proudly claim is their heritage.”

In India, a country that boasts over 1,000 mango varieties, the battle for the U.S. mango market has narrowed down to a tactical race between two titans: the delicate, high-demand alphonso and the sturdier, export-ready kesar, says Khakhar. What’s more, a preference for alphonso mangoes may have slowed market demand for Indian mango imports to the U.S.

“[Kesar and alphonso] are the No. 1 and No. 2 varieties in the U.S. Kesar is the most stable. The most demanded variety is alphonso, but because it is so delicate and it does not yield good commercial outcomes, kesar has overtaken alphonso,” Khakhar says.

The CEO says that inconsistent eating experience with alphonso has led to kesar’s takeover.

“People have actually graduated now to kesar because it’s a rational thing that when you buy kesar, you don’t go wrong. But with alphonso, it’s a hit and a miss in terms of internal issues,” he says. “That’s why the kesar has probably been 50% of all the varieties that India [exports]. It’s by far the most dominant variety that is coming to the U.S.”

Kay Bee Exports CEO Kaushal Khakhar sees major potential for Indian mangoes in the U.S. market.

(Photo courtesy of Kay Bee Exports)

India Dominates in Mangoes

Despite India’s status as a global powerhouse — accounting for roughly 40% to 45% of world production — the country has historically struggled to translate its massive domestic yield into export dominance, says Khakhar, who notes that this trend is shifting.

A key factor in the global mango trade is the complementary timing between regional rivals India and Pakistan. While both nations produce high-quality varieties, their harvest windows rarely overlap; the Indian season peaks in April, May and June, while Pakistani varieties typically arrive in June, July and August, says Khakhar. This sequential availability allows the Asian diaspora and broader consumer base to transition from Indian mangoes to Pakistani varieties as the summer progresses, effectively extending the window for South Asian produce in European and Western markets.

The U.S. market represents a particularly fertile ground for expansion. According to Khakhar, India currently exports approximately 4,000 tons of mangoes to the U.S. annually. Kay Bee Exports has secured a significant foothold in this specific corridor, handling between 1,000 and 1,200 tons, or roughly a quarter to a third of the total Indian market share in the U.S.

While these numbers are currently a small fraction of India’s overall production, they represent a high-growth sector that has been steadily building momentum since market access was first established in 2007.

“It took a very long time for India to really start picking up in mango export numbers,” says Khakhar. “I think the first 10 to 15 years were [defined by] complicated logistics, and people were not able to execute the delivery of good quality mangoes. I [also] think everyone was focusing on alphonso, and that was the reason why the market never really grew, because they were trying the wrong variety.”

While Kay Bee Exports has its own mango farms, to sustain its growth, the company is leveraging India’s network of millions of small-scale farmers to scale its operations to meet skyrocketing international demand.

“And now people realize that they should go slow on alphonso and focus on other things and that has really helped India as we establish consumer confidence, and hence the growth in the market,” he says. “I anticipate India will grow from 4,000 tons right now to touch 10,000 tons in the next five to seven years in the U.S. market.”

Overcoming the Irradiation Knowledge Gap

While Indian mango exporters are now backing the right horse with the switch from alphonso to kesar, the industry faces another hurdle with the U.S. irradiation requirement for all mangoes from India entering the U.S. market.

Irradiation is a necessary treatment for Indian mangoes because it is the only effective method to eliminate the mango stone weevil, says Khakhar. While hot water treatments can address fruit flies, they are ineffective against the stone weevil, a pest of significant concern for U.S. agricultural authorities. Consequently, irradiation is required by U.S. regulations to ensure that these pests are not introduced into the country, making it a critical gateway for Indian mango exports.

The CEO also emphasizes that irradiation is a superior alternative to other common treatments.

“Irradiation is a great process because it is very gentle on the fruit,” he says. “It is definitely not as toxic as methyl bromide fumigation. It is also not as intrusive on the fruit as hot water or any other treatments.”

Despite being FDA-approved and backed by global research confirming its safety, Khakhar expresses disappointment that consumer misconceptions and retailer hesitation — particularly among high-end and organic grocers — continue to hinder the market potential of irradiated fruits.

‘Manageable’ Mango Prices for Consumers

While recent headlines might suggest that Indian mango prices in the U.S. have reached epic heights, the reality on the ground is far more nuanced.

Khakhar says the actual cost increase has been roughly 10% compared to last year — a figure he describes as “manageable” and “normal food inflation.”

What’s currently driving up the cost of mango imports from India is air freight costs, which have jumped by 20% due to the conflict in the Middle East, says Khakhar, who adds the surge has been partially offset by a favorable exchange rate and the removal of import tariffs that previously plagued the trade.

Though Khakhar points out that even when tariffs were in place, they were often a minor factor in the final retail price of mangoes. Because air freight accounts for roughly 70% of a mango’s cost and is not subject to tariffs, a 10% tax only applied to the remaining 30% of the value — effectively a 3% impact.

Ultimately, the 2026 Indian mango season is defined by resilience, says Khakhar, with exporters like Kay Bee maintaining a steady supply of the in-demand fruit.

“If the Middle East conflict does normalize quickly — right now it is in a pause phase — but if everything normalizes and then takes a couple of weeks for air freight prices to come down, we may go even below last year’s prices,” says Khakhar. “But right now, we are higher than that with the current way things stand.

“But the market size is very large, and our aspiration is to take the flavor of Indian mangoes to a wider community,” he says.

Promising Potential? Why India Poses the Biggest Opportunity for Trade, But Also the Biggest Challenge

Wed, 23 Apr 2025 15:45:47 GMT

As trade tensions continue to impact both commodity and financial markets, the White House says the Trump administration is making progress on additional trade deals. The news comes as Vice President JD Vance was in the middle of a four-day visit to India, with both countries saying they had made progress in negotiating a bilateral trade deal. Delhi hopes this deal will help it avoid higher tariffs.

Vance announced the U.S. and India have “officially finalized the terms of reference for the trade negotiation.” He called it a “vital step,” saying it sets a roadmap toward a final deal.

India is just one of several trade deals in the works, according to the Trump administration. White House press secretary Karoline Leavitt said on Tuesday the Trump administration now has “18 proposals on paper” for trade deals.

“You have Secretary Bessent, Secretary Lutnick, Ambassador Greer, NEC Director Hassett and Peter Navarro, the entire trade team meeting with 34 countries this week alone,” Leavitt said in the press briefing. “We are moving at Trump speed to ensure these deals are made on behalf of the American worker and the American people.”

Leavitt also announced “the president and the administration are setting the stage for a deal with China.”

The Wall Street Journal reported the White House is considering slashing tariffs in order to de-escalate the trade war. Currently, tariffs are at 145%, but the White House isn’t considering cutting those to zero. Instead, the Wall Street Journal reports those tariffs will likely fall anywhere between 50% to 65%.

However, Treasury Secretary Bessent declined to comment on that report, saying there’s no unilateral offer from President Trump to cut tariffs on China. He also said it could take two to three years to reach a full trade deal with China.

Progress With India
Before the White House’s 90-day pause on higher tariffs for other countries expires on July 9, India is one country rushing to negotiate a trade deal with the U.S.

Just this week, Vance and Prime Minister Modi announced the t erms of reference for a bilateral trade agreement between the U.S. and India. The progress toward the agreement was a result of the meeting between the two this week.

“I am pleased to confirm that USTR and India’s Ministry of Commerce and Industry have finalized the Terms of Reference to lay down a roadmap for the negotiations on reciprocal trade,” Greer said. “There is a serious lack of reciprocity in the trade relationship with India. These ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers. India’s constructive engagement so far has been welcomed and I look forward to creating new opportunities for workers, farmers and entrepreneurs in both countries.”

During Vance’s speech in Jaipur prior to that, he said that the two countries had finalized the terms of reference for the negotiation.

“This is a vital step toward realizing President Trump and Prime Minister Modi’s vision because it sets a roadmap toward a final deal between our nations,” Vance said.

India’s Tariffs on U.S. Agriculture Products
India’s tariffs on U.S. agricultural goods are significant, which is a major point of contention in the U.S. and India trade relationship. Walnuts, for example, face a tariff of 100% into India. Vegetable oils have a tariff of up to 45%.

The United States has one of the lowest average applied tariff rates on agricultural products. But many of our trading partners maintain prohibitive tariff rates that constrain export opportunities for American farmers and ranchers.

Unfair and non-reciprocal practices have… pic.twitter.com/mmy5spBEzl
— United States Trade Representative (@USTradeRep) April 23, 2025

The U.S. argues these tariffs are unfair trade barriers, and Mark Knight of Farmer’s Keeper Financial told AgDay the U.S. relationship with India over the years has been complex and strange.

“Sometimes it’s friendly, for the most part. But that’s a giant population, and it would go a long way toward making a potential deal with China less important if we could strike some deals with some of these other countries — especially India. We haven’t had something in place with India for years.”

India Has the Most Potential, But Poses the Biggest Problem
If you want to understand just how problematic India has been for trade in the past, just talk to Gregg Doud. He’s the current CEO of National Milk Producers Federation (NMFP) but served as the chief ag trade negotiator during the first Trump administration.

During an episode of “Unscripted” earlier this year, he said India has the most potential, but is the biggest problem.

Doud says history shows you India has been a problem, as the U.S. essentially kicked India out of the World Trade Organization (WTO) in the past. The U.S. did finally agree to allow India back into the WTO, but under certain terms.

“I don’t want what I’m about to say to be seen as being negative toward the discussion between Modi and President Trump earlier this year, but one of the wins we did get in agriculture — which is my understanding based on some conversations — is that India lowered the tariff on U.S. bourbon from 150% to 100%,” Doud says.

He says while that may not have been the only win, it serves as an example for how difficult it is to negotiate with India.

India is a big customer of one main U.S. ag product, though: almonds .

In the 2023/24 crop year, the U.S. exported over 400 million lb. of almonds to India, making it the largest export market for California almonds. This was a 21% increase compared to the previous year. India’s almond imports from the U.S. were valued at $932 million in FY 2023.

India is the United States’ top buyer of almonds.

(U.S. Almond Board )

Doud says India has high tariffs to protect their own farmers.

“Think of it as a half billion farmers in India whose electricity, water, fuel, fertilizer and seed is all subsidized. India wants to keep that out in the country, and if we do anything that drives rural Indian folks into the cities, it would overwhelm them. This is the mindset,” Doud says. “I remind people, it was 5 or 6 years ago that India made a modicum of reforms of their domestic agricultural markets. There was so much unrest over those changes that Modi agreed upon to make, that three years later, they had to repeal the law.”

India’s Tariffs Crushed Apple Exports
U.S. apples are one commodity that has suffered from India’s retaliation in 2018.

“In 2018, India was the No. 2 market for U.S. apples until their retaliatory tariffs crushed our exports to near zero. They are rebounding back, but it might take years to return to the previous levels,” says Jim Bair, president and CEO of the U.S. Apple Association, in an interview with Farm Journal’s The Packer. “If the White House can facilitate that in a trade agreement with India, U.S. Apple wishes them Godspeed, and not a moment too soon.”

U.S. Apple says in 2018, India was the number two market for U.S. apples until retaliatory tariffs crushed their exports to near zero.

(U.S. Apple Association )

Potential With India
As the world’s most populous country, India holds massive potential if a trade deal can be struck. It boasts one of the fastest growing economies in the world with households that are seeing a high levels of consumer spending. That means agricultural products would be more accessible to a larger number of people.

According to USDA , top agricultural prospects for U.S. exporters include:

Cotton
Dairy products
Ethanol
Fresh fruit
Forest products
Processed food and beverages
Pulses
Tree nuts

USDA says in FY 2023, India imported $37 billion of agricultural and related products from across the world, with imports up 51% over the past five years.

“Proportional to its population, India imports a relatively small value of products. Comparatively, China, a country with a similar population size, imported $262.7 billion during the same period. Currently, India ranks behind much lower population countries like Canada and South Korea in total agricultural and related imports. This relatively low level of imports suggests good opportunities for future growth,” the USDA report stated.

Much of the recent growth of imports in India is with vegetable oils, which is the country’s top imported ag product.

USDA says imports of vegetable oil increased by $9 billion, nearly doubling in 5 years, to a total of $18.4 billion in FY 2023.

The United States has occasionally been a supplier of soybean oil to India, but imports face stiff competition from other substitutable oils like palm and sunflower, and from imports from India’s traditional soybean oil suppliers: Argentina and Brazil.

India slashes tariffs on blueberries, cranberries and other U.S. ag exports

Wed, 13 Sep 2023 17:42:53 GMT

In the latest sign that trade ties between the U.S. and India are strengthening, tariffs to India have recently been cut for key U.S. commodities. This includes fresh, frozen and dried blueberries and cranberries, along with pulses, meat and poultry agricultural products.

The development, synced with the G20 summit in New Delhi, follows the lifting of India’s retaliatory tariffs on U.S. apples, chickpeas, lentils, almonds and walnuts that was announced earlier this summer that took effect this week, Agriculture Secretary Tom Vilsack said in a statement.

“Under the Biden-Harris Administration, USDA and [the Office of U.S. Trade Representative] have focused on rebuilding trust and strengthening relationships with our global trading partners, including India, and working through the World Trade Organization and other venues to ensure that those partners live up to their obligations so that U.S. agriculture has full and fair access to key export markets,” Vilsack said.

This resolution follows earlier trade breakthroughs between the U.S. and India in June in which India agreed to reduce tariffs on U.S. products that included apples, walnuts and almonds. Both trade deals work towards a resolution of the WTO’s long-standing poultry dispute, according to the Office of U.S. Trade Representative Katherine Tai.

Related news: USTR announces repeal of India’s tariff on U.S. apples, walnuts

“Resolving this last outstanding WTO dispute represents an important milestone in the U.S.-India trade relationship, while reducing tariffs on certain U.S. products enhances crucial market access for American agricultural producers,” Tai said in a news release. “These announcements, combined with Prime Minister Modi’s State Visit in June and President Biden’s trip to New Delhi this week, underscores the strength of our bilateral partnership.”

The North American Blueberry Council praised the recent announcement, viewing the U.S. trade effort milestone as the culmination of work and investment many years in the making.

“We applaud the Biden Administration for their work to strengthen U.S. trade relations with India. India is a key market for U.S. blueberry producers, and we welcome the opportunity to bring more blueberries to Indian consumers,” North American Blueberry Council President Kasey Cronquist said in a statement.

“The U.S. has long faced a 30% tariff in India, which has resulted in declining market share for American blueberries against countries that have enjoyed free trade and reduced tariffs with India,” Cronquist said. “The reduction in tariffs for U.S. blueberries will put American producers at a more level playing field with our competitors.”

Growers on the West Coast were the early drivers in bringing U.S. blueberries to India, she said.

“In 2017, the Washington Blueberry Commission secured a Specialty Crop Block Grant that laid important groundwork for what became an industrywide effort to lower the tariff in India,” Cronquist said. “I commend the WBC and all of our state organization partners for their leadership in developing the market for blueberries in India and for their continued partnership on this effort.”

The cranberry industry also joined in celebrating last week’s announcement from the Office of the U.S. Trade Representative that India will reduce tariffs on U.S. fresh, frozen, dried, and processed cranberry products, according to a statement from the Cranberry Marketing Committee.

“This is an important achievement and one that will support U.S. cranberry growers and handlers across rural America to meet the growing demand in India for high quality U.S. cranberry products. Since the Cranberry Marketing Committee’s promotional efforts began in India in 2017, exports to the market have grown from $1.6 million to $8.6 million,” said the statement.

With tariffs reduced, U.S. cranberries will be more accessible to Indian trade and consumers in the years to come, said the statement.

Rocky trade backdrop greets McKinney speech at U.S. Apple meeting

Fri, 13 Nov 2020 06:10:58 GMT

CHICAGO - With the apple industry racked by trade troubles with India and China, U.S. Agricultural Trade Under Secretary Ted McKinney had a tough audience when he spoke Aug. 23 at the U.S. Apple Association Marketing and Outlook Conference.

While acknowledging the Trump administration has a part in the trade war with China and India, McKinney said the ultimate White House objective is to have fair and free trade.

“We have a lot of trade disputes going on now, and I fess up, we’re part of that,” he said. “But I do profess that we’re just trying to straighten it out, set the bar straight, and set up a level playing field so it is free and fair trade around the world,” he said, stating several times that the U.S. believes in “win-win” trading relationships.

McKinney joked he was taken out to dinner the previous night by representatives of the Washington Apple Commission and the heavy makeup he was wearing was because of the “bruising” conversation with apple leaders.

The apple industry has lost out on millions in export sales to China because of that country’s retaliatory tariffs on U.S. apples. Export sales to China were $13.6 million in 2018, down from more than $24 million in 2015.

“We hope we can mitigate (trade losses)as quickly as possible,” McKinney said. “No one more than I, no one more than Secretary Perdue, and even no one more than our President wants to get to trade on a level and balanced field, and get rid of the tariffs,” he said. “But it takes two to tango.”

McKinney said that President Trump wanted to address the precarious position of the U.S. steel and aluminum industry when he came into office.

“You don’t want to have (other countries) single-handedly controlling something as basic as (the steel industry,” he said. “That’s what has led to those tariffs; we had to start bringing those industries back to life,” he said.

McKinney said he believes the Trump administration has “nearly” reached its objective and can soon bring tariffs down. In addition, he said President Trump has asked U.S. trade negotiators to seek out bilateral deals. McKinney said the U.S. may be close to announcing a bilateral trade deal with Japan.

As part of the agency’s trade mitigation program, the Trump administration also has provided several million dollars to apple groups to expand global marketing efforts.

McKinney said the Trump administration does not intend on buckling to China’s retaliatory tariffs.

“This is not the time we can retreat and see all of our efforts go waste,” he said.

India’s retaliatory tariff of 20% of U.S. apples, combined with its regular tariff of 50%, has crippled exports to that market. USDA statistics show that exports of U.S. apples to India from January through June this year totaled $50 million, off 67% from $151 million for the same period in 2018.

McKinney is bullish on trade with India over the “very long term” but said prospects were uncertain for immediate tariff relief for U.S. apple exporters.

Despite the trade troubles now, McKinney reminded the audience that meeting global food needs won’t be easy in the coming decades. With 7 billion people on the planet now about 10 billion expected by 2050, he said producers will have to double output in the next three decades. That will mean embracing technology and trade to help make it happen.

McKinney said the passage of the U.S. Mexico Canada Agreement by Congress is critical to yield further trade progress.

“I think (passage of USMCA) brings certainty to those of you who are struggling to get certainty in your lives, with all the trade disputes like a lot of plates spinning up on those rods,” he said. “For goodness sake, let’s bring one plate down, clean it up very nicely, put it on the shelf and say let’s go do business like normal,” he said.

Expanded U.S. trade with the United Kingdom is possible in the coming months, with the likelihood of a “hard” Brexit from the European Union by Oct. 31. Expanded trade with the “protectionist” European Union is unlikely, he said.

“We’re preparing to do everything we can to help lift up our friends in the United Kingdom,” he said,

McKinney praised the global nature of the U.S. Apple event. “You are coming together and covering issues as a team,” he said. “I hope you keep it up; I will be your biggest fan.”

Jim Bair, president of the U.S. Apple Association, praised McKinney for his willingness to speak to the apple industry, despite trade troubles.

“I just want to say in front of the apple industry that I want to congratulate you and compliment the administration for its transparency and willingness to meet... even if we don’t agree with the end of the conversation,” Bair said.

Fresh fruits exports lag under weight of tariffs

Thu, 22 Sep 2022 02:13:37 GMT

Retaliatory trade tariffs continue to hurt U.S. fruit exports.

Updated trade statistics show that total U.S. exports of fresh fruit dropped 8% from September 2018 to August. U.S. exports of fresh vegetables rose 7% in the same period, according to the U.S. Department of Agriculture.

The numbers appear to confirm the stinging combined effect of retaliatory and standard tariffs of 50% or more applied by China and India over the past year. U.S. fresh fruit exports to China are off by more than one-third, while shipments to India are down 65% compared with the previous year.

Exports lag

Total U.S. fresh fruit exports totaled $4.33 billion from September 2018 to August, off 8% from $4.71 billion for the same period a year ago and the lowest total in the past five years.

The top destination for U.S. fruit exports, with comparisons to the same period last year:

U.S. fresh vegetable exports are dominated by trade to Canada, which takes about 75% of all fresh vegetable exports. September 2018 to August U.S. fresh vegetable exports to Canada were $2.01 billion, up 10% compared with year ago numbers.

Imports tally steady growth

U.S. imports of fresh and frozen fruits and fresh vegetables were both up September 2018 through August compared with the previous year, according to the USDA.

U.S. imports of fresh/frozen fruits rose 5% and fresh vegetable imports climbed 6%.

Mexico accounts for about 70% of total U.S. fresh vegetable imports of $8.88 billion. From September 2018 through August, Mexico fresh vegetable exports to the U.S. were $6.2 billion, up 7% up from a year ago. At $1.57 billion, U.S. imports of Canadian fresh vegetables were 5% above year-ago levels.

Mexico also accounts for the largest share of U.S. fresh/frozen fruit imports, with a 48% share. U.S. imports of Mexican fresh and frozen fruit were $7.04 billion, up 10% from year-ago levels.

Top U.S. import sources of fresh/frozen fruit from September 2018 to August, compared with a year ago:

Balance of trade

Total U.S. imports of fruits and vegetables totaled $23.4 billion for the September to August period, compared to U.S. exports of fresh fruits and vegetables of $7 billion for the same period. That equates to a trade deficit of about $13.4 billion for the period.

For all U.S. agriculture exports, the U.S. still has a trade surplus, according to the USDA. Exports of $11.2 billion compares with imports of $10.46 billion, leaving a trade surplus of $812 million.

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CORRECTED: India acts on 20% apple tariff

Fri, 13 Nov 2020 06:05:11 GMT

Corrected: A previous version of the story had incorrectly reported the retaliatory tariff amount.

After months of delay, India has imposed a 20% retaliatory tariff on U.S. apples, walnuts, almonds, and 25 other goods.

First scheduled to take effect in June last year, the 20% retaliatory tariff on U.S. apples had been repeatedly postponed. India imposed the tariffs June 16 in response to President Trump’s tariffs on imported Indian steel and aluminum put in place last year.

U.S. apple shipments to India face a base tariff of 50%, so the retaliatory tariff will increase the total tariff to 70%.

Todd Fryhover, president of the Wenatchee-based Washington Apple Commission, said in an e-mail that the announcement was anticipated, and put aside the uncertainty exporters have been facing.

“Frankly it’s good to put aside the indecision we’ve been experiencing since Aug. 2,” he said.

Fryhover said Washington exported more than 8 million bushels to India in the 2017-18 season, making the country the second-most important customer of Washington apples that season. This season, however, shipments to India are off about 66% compared with year-ago levels.

“Expectations are for a substantial slowdown of exports from Washington for the balance of the 2018-2019 season, with hopes of a resolution prior to the upcoming 2019-2020 WA season which will begin harvest in August,” Fryhover said.

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India delays tariffs of U.S. apples

India threatens on U.S. apples

India pushes back retaliatory tariffs on U.S. apples

Fri, 13 Nov 2020 05:36:47 GMT

Once again sparing U.S. apples , the government of India has delayed implementation of retaliatory tariffs related to U.S. import tariffs on steel and aluminum from India.

The government of India pushed back the effective date of new tariffs from Sept. 18 to Nov. 2, according to a report in the Times of India.

The two governments are in negotiations to remove trade friction for a variety of goods, according to the report.

First scheduled to take effect in June, the 25% retaliatory tariff on apples was later postponed from Aug. 4 to Sept. 18. The latest delay is another dose of temporary relief for U.S. apple exporters.

The U.S. Department of Agriculture reported that from July 2017 to June 2018, India represented the second largest export market for U.S. apples, behind only Mexico.

U.S. exporters shipped $174.7 million of apples to India from July 2017 to June 2018, up 96% from $89.2 million shipped the same time frame the previous year.

By volume, the U.S. shipped 167,951 metric tons to India from July 2017 to June 2018, up 80% from 93,534 metric tons during the same period the previous year.

JVI Imports launches brown coconut program direct from India

Tue, 16 Jan 2024 22:05:37 GMT

JVI Imports says it has received its first container loads of brown coconuts from India, a new program for the company.

India has long been a major supplier of brown coconuts, also known as dry coconuts or mature coconuts, to Europe and the Middle East, but they are relatively new as a supplier to the U.S. market, according to a news release. U.S. demand is currently fulfilled primarily by fruit from the Dominican Republic, but JVI Imports said it anticipates a strong market for Indian coconuts thanks to a combination of quality and value.

“Based on the volumes and quality being produced by Indian growers, and the market conditions there, we expect this Indian product to compete very favorably with other exporting countries here in the U.S.,” John Vena, president of JVI Imports, said in the release. “We have been very impressed with the ability of our Indian grower partners to produce and ship high-quality coconuts that can compete with the best here in the U.S., but at a very competitive price point.”

According to 2020 data from the U.N.'s Food and Agriculture Organization, India produces more coconuts than any other country except Indonesia. Within India, coconut production is centered in Southern India where coastal tropical and subtropical climates present the ideal growing conditions.

JVI Imports’ key partner is Vashini Exports, a family-owned grower in the south Indian state of Tamil Nadu. JVI Imports says the company has decades of experience growing, packing and shipping coconuts and maintain a strong commitment to food safety and traceability with GlobalGAP and organic certifications. Because of the growing conditions, fruit can be harvested and shipped year-round, according to the release.

JVI Imports said it is confident in the grower to meet the needs of U.S. retailers.

“Vashini has been shipping coconuts around the world for decades and they know their stuff,” Vena said. “They understand all the boxes that must be ticked, and then go above and beyond to add value, offering, for instance, sized coconuts — currently a rarity in the U.S., but we hope to change that as we build partnerships with retailers and begin to understand their particular preferences in terms of diameter, counts, and pack sizes.”

JVI Imports will be targeting both retail and foodservice markets, with a focus on ethnic retailers, Emily Kohlhas, marketing manager at John Vena Inc, said in the release

“Dry coconuts are becoming a more common site in the tropical section of mainstream produce departments near pineapples and mangoes, but the bulk of the demand is still being driven by ethnic markets where brown coconuts are a staple part of the weekly shop,” said Kohlhas, who also reported that there will be a particular focus on retailers that serve Indian, Southeast Asian and Latino communities.

JVI Imports said it hopes to continue to build a market for brown coconuts in the U.S. While the initial program is focused on year-round availability of bulk dry brown coconuts, the company is already planning an expansion to include additional SKUs, including Easy-Open coconuts and brown coconuts with PLU labeling, according to the release.

Kohlhas highlighted a need for continued consumer education around coconuts.

“Many people don’t understand the distinction between these brown, mature coconuts and a young coconut,” Kohlhas said. “Brown coconuts are not used for their water — they’re a source of fresh, delicious coconut meat for shredding, desiccating or blending and pressing into coconut milk. There is some clear coconut water in them, but it tends to have an off, slightly fermented flavor, so it’s generally discarded. It’s important to emphasize these differences when training produce department staff so they can direct consumers to the right option for their needs.”

Volumes will start slowly, but JVI Imports anticipates consistent growth through 2024 as the customer base develops, the release said.

“Our initial trials have been very positive, and we already have buyers coming back for more,” Vena said. “We’ve built this program with an eye towards steady, consistent supply. Our partner growers can produce and ship year-round, so we hope to be building an entirely new supply chain to support large-scale retail and foodservice demand.”

Trump Moves to Impose Reciprocal Tariffs, And It Could Reshape U.S. Trade Policy

Fri, 14 Feb 2025 15:06:19 GMT

President Donald Trump signed an executive order on Thursday , directing his administration to impose reciprocal tariffs on foreign countries with high tariffs and non-tariff barriers on U.S. exports.

These customized levies, expected to be finalized by April, are designed to rebalance trade relationships and target unfair practices, including subsidies, regulations, and exchange rate manipulation.

The proposed tariffs will be calculated on a country-by-country basis and could apply broadly to industries such as automobiles, semiconductors, and pharmaceuticals. Trump cited the European Union’s value-added tax (VAT) and restrictive regulations as examples of unfair trade practices, along with Japan and South Korea, which he claims have long taken advantage of the U.S.

“Whatever countries charge us, we will charge them back,” Trump said from the Oval Office, declaring the end of what he sees as a one-sided trade relationship. He indicated that additional import taxes beyond reciprocal tariffs would be imposed later.

Of Note:

The Trump Administration will first look at the countries with the highest tariffs on U.S. goods. An official briefing reporters said the tariffs could come into effect in weeks or months.

“For many years the United States has been treated unfairly by trading partners, both friend and foe,” according to a memorandum Trump signed. “This lack of reciprocity is one source of our country’s large and persistent annual trade deficits in goods. I’ve decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America,” Trump said in announcing the new tariffs. “In almost all cases, they’re charging us vastly more than we charge them, but those days are over.”

Trump also said that tariffs on cars, semiconductors and pharmaceuticals in addition to the reciprocal tariffs will come “shortly.”

The official briefing reporters said the aim is to have discussions with countries about how their policies have created a trade imbalance and that Trump would be more than happy to lower tariffs if countries want to pare their tariffs or remove other trade barriers.

Marks a Major Shift in U.S. Trade Strategy

The reciprocal tariff plan marks a sharp departure from the “most favored nation” principle that has guided global trade policy since the post-World War II era. Under this system, all trading partners receive equal treatment unless covered by a specific trade agreement. Trump’s new approach aims to align U.S. tariff policies with those of its trading partners, effectively abandoning this long-standing norm.

Howard Lutnick, Trump’s nominee for Commerce Secretary, said studies and calculations would be completed by April 1, after which Trump could act immediately. The tariffs will require detailed analysis for nearly 200 countries, each with its own complex tariff schedules and trade regulations — a big task for the U.S. Trade Representative and Commerce Department.

Key: The executive order says: “Within 180 days of the date of this memorandum, the Director of the Office of Management and Budget shall assess all fiscal impacts on the Federal Government and the impacts of any information collection requests on the public, and shall deliver an assessment in writing to the President.”

You can read the full White House Fact Sheet here .

Negotiation or Brinkmanship?

While the plan seems aggressive, Trump’s decision to delay immediate implementation could be a strategic move to encourage negotiations, as he successfully did with Mexico, Canada, and Colombia. He emphasized that he would be open to reducing tariffs if other nations lowered theirs or eliminated non-tariff barriers. “It’s a two-way street,” Lutnick said, suggesting the administration remains flexible if partners engage in reciprocal concessions.

However, Trump stated that exemptions and waivers would be rare. He referenced Apple Inc.’s past exemption during his China tariffs but insisted this round would apply to all companies and countries without exceptions.

Global Implications

The new tariff plan could particularly hurt developing nations that impose higher average duties on U.S. imports. It differs from Trump’s earlier campaign proposal for a universal tariff on all imports. Instead, reciprocal tariffs will be tailored to match specific foreign policies and trade barriers.

India could be one of the hardest-hit countries, with its historically high tariffs on U.S. goods. Trump’s announcement came just hours before a scheduled meeting with Indian Prime Minister Narendra Modi, signaling that the topic would feature prominently in their discussions.

Trump’s tariff push follows his earlier move to impose a 10% tariff on Chinese goods and plans for 25% tariffs on U.S. steel and aluminum imports next month. The breadth of the new directive suggests a significant expansion of his trade war strategy, which has already injected uncertainty into global markets and left businesses waiting for clarity.

Of note:
While Trump and his advisers blame U.S. trade deficits on unfair foreign practices, many economists argue these imbalances are largely driven by broader macroeconomic factors, such as consumer demand, the U.S. dollar’s status as a reserve currency, and global appetite for U.S. assets.

Farm Groups and Farm-State Lawmaker Reactions: Growing Alarm Over Reciprocal Tariffs

Trump’s proposal for reciprocal tariffs will likely spark reactions from some U.S. farm groups and lawmakers representing agricultural states, many of whom fear negative impacts on rural economies and American farmers.

Key Concerns from the Agriculture Sector

Loss of Export Markets: Many farmers fear that countries like Japan, South Korea, Mexico, and the EU will retaliate by targeting U.S. corn, soybeans, pork, dairy, and beef exports.
Financial Pressure on Farmers: After years of trade uncertainty and declining commodity prices, new tariffs could push many farms to the brink of bankruptcy.
Global Competitiveness: Other countries, such as Brazil and Argentina, could quickly fill the void in markets like China, permanently reducing U.S. market share.
Rural Economic Decline: Tariffs on farm goods have a ripple effect, hurting local businesses, equipment manufacturers, and rural banks that rely on the agriculture economy.

What Farm Groups May Demand

Exemptions for Agricultural Exports: Some farm groups are urging the White House to exempt agricultural products from reciprocal tariffs to avoid retaliation.
Prioritize Trade Agreements: Several organizations called for the administration to focus on new trade deals rather than escalating tariff battles.
Direct Financial Support: If tariffs are imposed, farm groups will push for expanded federal relief programs like those used during the U.S./China trade war.

Global and Economic Reactions to Trump’s Reciprocal Tariff Plan

President Trump’s proposal to impose reciprocal tariffs has triggered mixed reactions from global leaders, economists, and business groups, with many warning of significant economic repercussions and potential retaliation from U.S. trading partners.

International Response: Concern and Potential Retaliation

European Union (EU): EU officials expressed concerns about escalating trade tensions and hinted at preparing countermeasures. The EU is particularly sensitive to Trump’s criticism of its value-added tax (VAT) system and regulatory barriers.
Japan and South Korea: Both countries are seen as key targets of the new tariffs. Japanese trade officials stated that they were monitoring the situation closely and emphasized the importance of open markets. South Korea warned that reciprocal tariffs could disrupt supply chains, particularly in the technology and automotive sectors.
India: With historically high tariffs on U.S. goods, India is one of the most affected nations. Prime Minister Narendra Modi is expected to address the issue in upcoming talks with Trump. Analysts predict India could seek bilateral negotiations to avoid harsh tariff penalties.
China: Though not directly addressed in this announcement, China could view the move as part of Trump’s broader trade war strategy, increasing tensions even further. Chinese officials reiterated their stance on global trade stability and multilateral solutions.

Economic Experts: Risks of Economic Disruption

Most economists criticized the plan, arguing that trade deficits reflect structural economic factors, such as consumer spending patterns and currency valuation, rather than unfair trade practices alone.

Bloomberg Economics predicted significant disruptions in emerging markets, where tariffs on U.S. goods are generally higher, and economies are more vulnerable.
Trade Uncertainty: Businesses fear an unpredictable environment. Companies dependent on global supply chains—especially in the automotive, semiconductor, and pharmaceutical industries—are bracing for increased costs and operational complexity.
Potential Consumer Impact: Higher tariffs could lead to increased prices for U.S. consumers, particularly on imported goods like cars and electronics, experts warned.

Business Community Reaction: Cautious but Wary

U.S. Chamber of Commerce: Called for careful negotiation to avoid a full-blown trade war. “Reciprocal tariffs may help level the playing field,” a spokesperson said, “but they should be used as a last resort.”
Tech Industry: Companies like Apple are watching closely, given the potential impact on semiconductors and electronics imports. While Trump had previously granted Apple exemptions, this round may be far more restrictive.
Automotive Sector: Industry leaders warned that tariffs on car imports could reduce competitiveness and lead to job losses in U.S.-based manufacturing plants dependent on imported components.

Global Markets on Edge

The announcement injected volatility into global financial markets, with stocks in industries such as automotive, technology, and pharmaceuticals facing pressure. Investors remain uncertain about how aggressively the U.S. will enforce these tariffs and whether it could trigger retaliatory measures that harm global growth.

Expanded Global Country Responses and Market Impact

President Donald Trump’s plan for reciprocal tariffs has drawn sharp reactions across the globe, leaving governments scrambling to assess the potential consequences. The global financial markets have also reacted with volatility, particularly in industries most likely to be affected by the proposed changes.

Country-Specific Reactions

European Union (EU): Preparing for Retaliation
The EU sees Trump’s tariff strategy as a direct threat to its trade practices.

Targeted Sectors: Trump has repeatedly cited the 15% VAT and restrictions on U.S. agricultural exports as examples of unfair barriers.
Possible Retaliation: The EU is considering countermeasures, likely targeting U.S. agricultural products, Boeing aircraft, and tech companies.
Official Response: EU Trade Commissioner said, “We urge the U.S. to avoid actions that disrupt the global trade system. If necessary, the EU will defend its interests.”

Japan: Concern Over Automotive and Tech Exports

Japan is alarmed by the possibility of tariffs on automobiles and semiconductors, two of its most critical exports.

Automotive Sector: Tariffs on Japanese cars could significantly impact the country’s economy, where automobiles account for nearly 20% of total exports to the U.S.
Tech and Electronics: Semiconductor and electronics companies like Sony and Toshiba are bracing for higher costs and potential supply chain disruptions.
Diplomatic Response: Japan’s Ministry of Trade warned that “the move could destabilize longstanding trade ties” and emphasized the importance of resolving disputes through multilateral frameworks like the WTO.

South Korea: High-Tech Industries at Risk
South Korea’s tech and pharmaceutical sectors are directly in the line of fire.

Samsung Electronics, one of the world’s largest semiconductor manufacturers, stands to be heavily affected if Trump’s tariffs cover microchips.
Auto Industry: Hyundai and Kia have expressed concerns over potential tariffs on vehicle imports, which would raise prices for U.S. consumers and reduce their competitiveness.
Government Stance: The South Korean government indicated it would seek bilateral negotiations and warned that tariffs could lead to mutual economic harm.

India: High Tariff Barriers in Focus
India could be one of the hardest-hit countries due to its high tariffs on U.S. imports, especially in agriculture, medical devices, and tech products.

Key Sectors: U.S./India trade tensions are likely to rise, particularly in the pharmaceutical and automobile sectors, where India has long imposed protective tariffs.
Modi-Trump Talks: Prime Minister Narendra Modi is expected to use upcoming talks to negotiate exemptions or reductions in targeted areas.
Domestic Impact: Analysts warn that higher tariffs could reduce India’s access to critical U.S. technology and agricultural products, affecting domestic businesses and consumers.

China: Watching Closely
Although China was not a primary target of this announcement, it remains cautious, given Trump’s history of escalating trade disputes.

Strategic Watch: Chinese officials see Trump’s move as part of a broader trade containment strategy.
Potential Retaliation: If included in future tariff rounds, China could respond by targeting U.S. agricultural products, energy exports, and tech firms.

Market Impact: Volatility and Sectoral Effects

Trump’s announcement has caused uncertainty in global financial markets, with some sectors feeling immediate pressure.

Stock Market Reactions

Automotive Stocks: Companies like Toyota, Hyundai, and BMW saw share prices dip on fears of higher tariffs and reduced competitiveness in the U.S.
Tech Sector: Semiconductor giants such as Samsung and Intel are facing concerns about increased costs if tariffs extend to microchips and related technologies.
Pharmaceuticals: Multinational drug manufacturers, including Pfizer and Novartis, are bracing for disruptions in global supply chains and higher costs.

Currency Market Volatility

The announcement triggered fluctuations in Asian and European currencies as investors assessed the risk of a full-scale trade war.
The U.S. dollar initially strengthened on expectations that tariffs might reduce the trade deficit, but analysts warn this could be temporary if retaliatory measures weaken U.S. exports.

Commodity Market Impact

Agricultural Commodities: Potential retaliatory tariffs from trading partners could hit U.S. farmers, particularly those exporting soybeans, corn, and dairy products.
Steel and Aluminum: Following earlier tariffs on these products, prices for industrial metals may rise further, increasing production costs in manufacturing-heavy industries.

Broader Economic Consequences

Economists caution that the uncertainty alone could slow global growth by reducing business investment and cross-border trade.

Supply Chain Disruptions: Many industries rely on global supply chains, and new tariffs could force companies to restructure operations at significant cost.
Consumer Prices: U.S. consumers may face higher prices on imported goods, particularly in sectors like electronics, automobiles, and household goods.

Long-Term Risks

Global Trade Fragmentation: If other countries adopt similar protectionist measures, it could lead to the fragmentation of the global trading system, reversing decades of economic integration.
Shift in Trade Alliances: Countries excluded from U.S. tariff targeting may seek regional trade alliances to reduce their dependence on U.S. markets.