Economy

American spices body seeks tariff relief as US-India trade talks gain momentum

 Laura Shumnow, Executive Director,  The American Spice Trade Association  (ASTA).

Laura Shumnow, Executive Director, The American Spice Trade Association (ASTA).

The American Spice Trade Association (ASTA) is pinning its hopes on the new trade deal between the US and India as the Trump administration’s tariffs have choked black pepper exports from India.

The entire industry in the US such as food, culinary, pharmaceuticals, alcohol and even auto parts are definitely suffering because of these tariffs, said Laura Shumnow, Executive Director, ASTA. For the spice sector and the black pepper industry in the US, it has been very difficult to navigate with all of these new tariffs.

There have been rapid changes announcements that the tariffs will be reduced or increased over the last few months. It has been difficult for the industry to keep up. Often, deals are made months or even year or more in advance between buyers and sellers and with price fluctuations, it is really quite difficult, she said.

Inventories falling

Speaking to businesslineon the sidelines of the International Pepper Community meeting in Kochi, Shurmnow said “We hope the rates will come down from 50 per cent to something like 20 per cent as seen in other cases. “We are seeking exemptions for all agricultural commodities and spices that cannot be produced in the US. Black pepper definitely falls within that. Hopefully, we will be able to get zero tariffs on black pepper”.

“We hope to see a trade deal between India and the US, because right now the 50 per cent tariff is very difficult”, she said, adding that with the EU and the US, there is an exemption for saffron and paprika. There is exemption for many spices with the recent trade deals with Malaysia and Cambodia. “If India and the US are able to secure a deal, not only will the overall rate come down, but there will also be exemptions where some commodities have zero tariffs”, she said.

Asked how the spice industry in the US is managing the situation, Shumnow said the inventories are drawing shorter among traders compared to stocks on hand for five or six months.

Imports of black pepper to the US from global producing countries was about 70,000-85,000 tonnes for a value of $500 million per year. Of this, Indian exports are about $40 million. India is the third largest producer producing about 15 per cent of total black pepper, she said.

Published on October 28, 2025

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