Trump’s 50% Tariff Crushes Indian Fox Nut Exports, But a Domestic Boom Offers a Lifeline

U.S. sales have slumped by 40%, yet for India's $40 million fox nut industry, the future has rarely looked brighter. A crippling 50% tariff imposed by U.S. President Donald Trump has sent shockwaves through the export market, doubling prices for American consumers. But an unexpected surge in domestic demand is turning a potential crisis into a story of resilience.

The Tariff Turmoil

The trade dispute escalated in recent months after President Trump doubled the levy on Indian goods from 25% to 50%, citing India's imports of Russian oil. For the makhana (fox nut) industry, the impact was immediate. According to Al Jazeera, the U.S. market accounts for 50% of India's total fox nut exports, and sales to the country have plummeted by as much as 40%. For consumers like Ravjit Singh in Denver, this meant the price of a 25-gram pack of his favorite snack doubled from $2 to $4.

A Silver Lining at Home

Despite the export slump, many producers aren't worried. The COVID-19 pandemic fueled a health craze in India that brought the protein-packed makhana back into the spotlight, with domestic demand doubling each year since. Exporter Ketan Bengani noted that while his U.S. exports have dropped, the booming local market is more than compensating for the loss. This trend is creating new success stories. Producer Md Gulfaraz saw his company's sales skyrocket from $60,000 in 2019 to $500,000 in the fiscal year ending March 2025, driven almost entirely by domestic demand.

From Local Snack to National Priority

The Indian government is also betting big on the snack. It recently announced the formation of a 'makhana board' with an initial outlay of $11 million to support the industry's value chain and promote exports. Prime Minister Narendra Modi has publicly endorsed the 'superfood', signaling strong government backing. This enthusiasm is translating into tangible gains for farmers in Bihar state, where 90% of the world's fox nuts are grown. Laborers harvesting the seeds can now earn around $22 per day, more than double the typical wage for unskilled labor.