India Imposes 30% Tariff on U.S. Yellow Peas; U.S. Senators Urge
In a move to protect domestic farmers and stabilize local prices for a key dietary staple, India imposed a 30% import duty on yellow peas from the United States, effective November 1, 2025. The tariff—comprising a 10% basic customs duty plus a 20% Agriculture Infrastructure and Development Cess (AIDC)—was announced by India's Department of Revenue on October 30, 2025. It applies to shipments with a Bill of Lading dated November 1, 2025, or later.
Prior to this change, yellow peas enjoyed duty-free access to the Indian market, a concession originally set to continue until March 2026. The policy shift came in response to concerns from Indian farmers about an influx of cheaper imports suppressing domestic pulse crop prices. Pulses like lentils, chickpeas, dried beans, and peas remain essential staples in Indian diets, with the country accounting for approximately 27% of global pulse consumption.
The tariff has drawn sharp criticism from U.S. lawmakers, particularly those representing major pulse-producing states. On January 16, 2026, Republican Senators Kevin Cramer (North Dakota) and Steve Daines (Montana) sent a letter to President Donald Trump highlighting the issue. They described the duties as "unfair" and argued that they place U.S. pulse producers at a "significant competitive disadvantage" when exporting high-quality products to India.
North Dakota and Montana rank among the top U.S. producers of pulse crops, including peas, lentils, and beans. India has historically been a key buyer of U.S. pulses. The senators urged Trump to engage directly with Prime Minister Narendra Modi to secure "favourable pulse crop provisions" in any future bilateral trade agreement, emphasizing that such steps would be "mutually beneficial" for American farmers and Indian consumers.
This development occurs amid broader strains in U.S.-India trade relations. It follows U.S. imposition of higher tariffs on certain Indian imports in 2025, including measures tied to India's continued purchases of Russian oil (with some reports citing up to 50% tariffs or penalties on Indian goods). Trade talks between the two countries remain stalled, with hopes that diplomatic channels could provide relief for affected farmers on both sides.
The Indian tariff move has been interpreted by some observers as a measured or "silent" retaliation to U.S. actions, though it received limited initial publicity in India. Earlier precedents exist: In 2020, the same senators had raised similar concerns about Indian tariffs on U.S. pulses during Trump's previous term, including after India's removal from the U.S. Generalized System of Preferences (GSP) in 2019.
As of mid-January 2026, no immediate resolution has been reported, but the issue underscores ongoing challenges in balancing agricultural protections, consumer access, and bilateral economic ties between the world's two largest democracies.
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