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US Tariffs Cut: AYUSH Exports Get Major Boost
9 Feb
Summary
- US tariffs on AYUSH exports reduced from 50% to 18%.
- India's AYUSH exports to the US reached $688.89 million in 2024-25.
- The interim trade deal framework was announced on February 6, 2026.
India's AYUSH and nutraceutical industries are set to benefit from a substantial reduction in US tariffs. As part of the India-US Interim Trade Deal framework, announced on February 6, 2026, tariffs on these exports have been lowered from 50% to 18%. This change provides much-needed relief to sectors with limited operating margins. The AYUSH sector, encompassing traditional Indian medicine systems, saw its exports to the US reach USD 688.89 million in 2024-25, an increase of 6.11%.
Popular Indian exports to the US include Ashwagandha, Turmeric, Ginger, and Neem, alongside various Ayurvedic products. The US remains the largest market for these goods. The interim trade deal, a precursor to a broader Bilateral Trade Agreement, also addresses non-tariff barriers and aims to strengthen supply chains. Furthermore, the US has withdrawn an additional 25% ad valorem duty, effective February 7, 2026, offering further support to Indian exporters.
