Delays in U.S. Nut Shipments to India Amid Pending Trade Deal
A growing cloud of uncertainty over a proposed trade agreement between the United States and India is causing significant disruptions in the importation of U.S. dry fruits, particularly walnuts and almonds. According to Lorrie Boyer, Indian importers are delaying customs clearance processes for these shipments to avoid financial losses that could occur if tariffs are adjusted after goods are cleared.
These postponements are adding strain to supply chains that are already dealing with setbacks caused by the suspension of imports from Afghanistan. The Afghan trade halt is linked to the regional unrest triggered by Operation Sindoor, which recently targeted key infrastructure in Pakistan and Pakistan-occupied Kashmir, further destabilizing regional logistics.
100% Tariffs on U.S. Walnuts Under Scrutiny
At present, India imposes a 100% tariff on U.S. walnuts—both shelled and unshelled—making them among the most heavily taxed agricultural imports in India. These tariffs have long been a sticking point in U.S.-India trade relations. The issue was notably brought up during negotiations under former President Donald Trump’s administration, with ongoing discussions now raising hopes for change.
Ravindra Mehta, founding member of the Dry Nuts and Fruits Council of India, noted that both walnuts and almonds are likely candidates for tariff reduction in the current round of trade negotiations. Mehta emphasized that many Indian importers are choosing to delay their bill of entry filings in anticipation of a potential 50% reduction in import duties. By deferring customs clearance, importers hope to avoid paying inflated tariffs if the new rates are enacted shortly after.
Importers Bet on Duty Reductions Despite Penalties
According to Mehta, the industry consensus is that penalties associated with delayed clearances are a lesser financial burden compared to the potential losses incurred if import duties are lowered after shipments have already been processed. This strategic delay underscores the high-stakes nature of the trade talks and the immediate impact they can have on importers and supply chains alike.
Adding to the broader context of international trade adjustments, the Trump administration also announced a reduction in tariff rate quotas on Indonesian goods—from 32% down to 19%. Trump stated that this concession was made in return for securing full market access for U.S. enterprises in Indonesia, further indicating an aggressive push for American trade interests across global markets.
Conclusion
As negotiations continue between the U.S. and India, industry stakeholders are cautiously optimistic about a resolution that includes reduced tariffs on key commodities like walnuts and almonds. Until then, uncertainty and strategic delays will remain a defining feature of the nut import trade into India.