US tariff hits mentha oil trade in UP's Rampur: Thousands of crores at stake
Mentha oil, a key aromatic raw material used in a wide range of products including pharmaceuticals, cosmetics, and food items, has been particularly hard-hit.
- Aug 31, 2025,
- Updated Aug 31, 2025 9:15 AM IST
India's mentha oil industry is facing a severe disruption as a result of the 50 per cent tariff imposed by the United States, with exporters warning of financial losses amounting to several crores of rupees and a direct threat to the livelihoods of thousands of farmers and factory workers in Uttar Pradesh.
The tariff escalation-triggered by an additional 25 per cent levy imposed by U.S. President Donald Trump over India's ongoing purchase of Russian crude-came into full effect on August 27. The new rate builds on an earlier 25 per cent reciprocal tariff introduced on August 7, part of a broader move targeting around 70 countries.
Mentha oil, a key aromatic raw material used in a wide range of products including pharmaceuticals, cosmetics, and food items, has been particularly hard-hit. Exporters in Rampur, a major production hub, say the sudden cost spike has disrupted the international supply chain.
Amrit Kapoor, a mentha oil exporter, said the pricing shift has caused immediate commercial fallout. "The cost of a product of ours that was priced at USD 20 increased to USD 30 overnight due to the 50 per cent duty," he explained. "The buyer there doesn't understand how to get a USD 30 product from India. So, orders are on hold. The goods are being manufactured in the factory and we don't know when they will go."
Kapoor warned of cascading economic consequences, particularly for small-scale farmers and industrial workers. "Over 10 lakh of our farmer brothers are connected to this. They will not be able to get enough money, and I think they will not even get the cost of their production back," he said. "If America continues this behaviour and our production decreases, it is possible that in the coming time we may have to reduce the workers at factories."
Shirish Gupta, president of the Rampur chapter of the Indian Industries Federation, called the U.S. tariffs a "pressure tactic" and urged government intervention. "The government should create schemes for the industries that are in danger due to the tariff issue so that they don't close down and people's livelihoods are not put at risk," Gupta said. He described the situation as a "temporary phase" but stressed the urgency of a policy response.
The impact is being felt beyond Rampur. In Moradabad, known as the 'Brass City', exporters report a sharp decline in business. The city exports between Rs 8,500 crore and Rs 9,000 crore in handicrafts annually-75 per cent of which goes to the U.S. According to Haji Iftekhar, an export firm owner, "The 50 per cent tariff imposed by the Trump administration has brought exports to a standstill. Orders worth more than Rs 300 crore have already been halted and another Rs 150 crore worth of business is shifting to other countries."
He warned that the ripple effect could be devastating. "This could lead to a 50 per cent fall in U.S.-bound exports, pushing nearly 2 lakh people into unemployment. Several firms have already begun laying off workers," Iftekhar said.
(With inputs from PTI)
India's mentha oil industry is facing a severe disruption as a result of the 50 per cent tariff imposed by the United States, with exporters warning of financial losses amounting to several crores of rupees and a direct threat to the livelihoods of thousands of farmers and factory workers in Uttar Pradesh.
The tariff escalation-triggered by an additional 25 per cent levy imposed by U.S. President Donald Trump over India's ongoing purchase of Russian crude-came into full effect on August 27. The new rate builds on an earlier 25 per cent reciprocal tariff introduced on August 7, part of a broader move targeting around 70 countries.
Mentha oil, a key aromatic raw material used in a wide range of products including pharmaceuticals, cosmetics, and food items, has been particularly hard-hit. Exporters in Rampur, a major production hub, say the sudden cost spike has disrupted the international supply chain.
Amrit Kapoor, a mentha oil exporter, said the pricing shift has caused immediate commercial fallout. "The cost of a product of ours that was priced at USD 20 increased to USD 30 overnight due to the 50 per cent duty," he explained. "The buyer there doesn't understand how to get a USD 30 product from India. So, orders are on hold. The goods are being manufactured in the factory and we don't know when they will go."
Kapoor warned of cascading economic consequences, particularly for small-scale farmers and industrial workers. "Over 10 lakh of our farmer brothers are connected to this. They will not be able to get enough money, and I think they will not even get the cost of their production back," he said. "If America continues this behaviour and our production decreases, it is possible that in the coming time we may have to reduce the workers at factories."
Shirish Gupta, president of the Rampur chapter of the Indian Industries Federation, called the U.S. tariffs a "pressure tactic" and urged government intervention. "The government should create schemes for the industries that are in danger due to the tariff issue so that they don't close down and people's livelihoods are not put at risk," Gupta said. He described the situation as a "temporary phase" but stressed the urgency of a policy response.
The impact is being felt beyond Rampur. In Moradabad, known as the 'Brass City', exporters report a sharp decline in business. The city exports between Rs 8,500 crore and Rs 9,000 crore in handicrafts annually-75 per cent of which goes to the U.S. According to Haji Iftekhar, an export firm owner, "The 50 per cent tariff imposed by the Trump administration has brought exports to a standstill. Orders worth more than Rs 300 crore have already been halted and another Rs 150 crore worth of business is shifting to other countries."
He warned that the ripple effect could be devastating. "This could lead to a 50 per cent fall in U.S.-bound exports, pushing nearly 2 lakh people into unemployment. Several firms have already begun laying off workers," Iftekhar said.
(With inputs from PTI)