Tea is traded in bulk at low tariff rates. Tea-producing countries often erect high barriers to protect their local industries and negotiate free trade agreements with countries where the tea is blended and packed. These norms are expected to be abandoned on April 2 when the US imposes reciprocal duties at rates on par with exporters—retaliatory tariffs are likely to follow. Every tea drinker in the US will take a hit because importers will pay a much higher rate passed on to retailers. The de minimis exemption for shipments under $800 will up the cost of direct-to-consumer sales.
Consumed in moderate amounts, the goodness of tea polyphenols is likely why children benefit in several ways when their mothers drink tea while pregnant. An extensive study conducted at 36 months of age suggests that women who drink tea in the second and third trimesters likely enhance the cognitive capabilities of their newborns.
Tea Exporters Face Single-Country Reciprocal Tariff
By Dan Bolton
On April 2, the US will send trading partners in the tea lands a proposed tariff rate, likely leading to negotiations to arrive at a single country-specific tariff for all imports.
It is not clear the extent to which tea will be impacted, but the universal application of new tariffs includes several major tea trading partners targeted by the Trump Administration. Foremost of these is India, which has high tariffs and non-tariff barriers to trade to protect its domestic industry.
The rate will vary widely. For some countries, the new rate will be based on a low-percentage reciprocal tariff. In other instances, value-added sales tax and fees may be included when calculating the total duty.
US Treasury Secretary Scott Bessent said on March 13 that US trading partners will have an opportunity to avoid country-specific tariffs by lowering their tariffs or addressing other grievances.
Bessent said, “What’s going to happen on April 2 is that each country will receive a number that we believe represents their tariffs. So, for some countries, it could be quite low; for others, it could be quite high.”
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US President Trump has repeatedly said that tariffs should be adjusted so that “what they charge us, we charge them.” The exceptions are China, Canada, and Mexico, which face 10% to 25% tariffs.
Reciprocal tariffs are bad news for India, which imposes a 100% basic customs duty plus a 10% social welfare surcharge on all tea imports. India is the most highly tariffed major economy in the world. For example, the US and India are currently discussing eliminating peak tariffs of 100% to 150% on whiskey.
Data journalist Katharina Buchholz at market research firm Statista writes that “A look at the World Trade Organization tariff chart for the country [India] reveals very high average rates for beverages and tobacco (including alcoholic beverages), oilseeds, sugars, cocoa, tea, coffee, and spices.”
Statista published a chart of protectionary tariffs applied to selected imports to India by the most favored nations’ trading partners in 2023. Beverage tariffs average 74.5%, while tariffs on tea, cocoa, coffee, and spices average 47.6%. The rate for sugar and confectionary is 51.5% and for fruit and vegetables, 34.6%.
During the Biden administration, Canadian tariffs on US goods were very low, with most products entering the country duty-free under the United States-Mexico-Canada Agreement (USMCA). According to World Bank data, the average tariff on all imports from the US was 2.07%, while the average effective tariff on Canadian goods entering the US was 2.4%.
Canada, however, charges a general sales tax, a digital services tax, and provincial taxes in addition to tariffs.
Kenya charges a 16% VAT, a 3% declaration fee, and a 2% railway development levy. France charges a 20% VAT, Germany a 19% VAT, and Japan a 10% VAT. Italy imposes a 22% value-added tax, the highest in Europe.
Ireland’s Prime Minister Micheal Martin told Reuters that the European Union (EU) will take QUOTE “a bit of time” to respond to the new reciprocal tariff rates.”
“I believe the EU will adopt a strategic approach,” Martin told Ireland’s parliament. Ireland is among the EU countries most exposed to increased tariffs.
Drinking Tea While Pregnant May Enhance Children’s Cognitive Development
By Roopak Goswami
A new study from the Chinese National Birth Cohort (CNBC) suggests maternal tea consumption during pregnancy may significantly enhance children’s cognitive development.
The research, recently published in the peer-reviewed journal Scientific Reports, analyzed data from 1,423 mother-child pairs and found that drinking tea—especially during the second and third trimesters—was linked to improved cognitive, fine motor, and gross motor skills in children at 36 months.
Reproductive-aged women habitually consume tea and coffee; thus, the potential effects of their consumption on women and their children deserve attention.
The Study: Tea’s Role in Early Brain Development
Researchers from Anhui Medical University and Nanjing Medical University conducted the study, which assessed children’s cognitive abilities using the Bayley Scales of Infant and Toddler Development III (BSID-III). To understand the effects of maternal tea consumption, scientists grouped expectant mothers based on their tea-drinking habits throughout pregnancy and identified distinct trajectories.
Findings revealed that mothers who consistently drank tea across all three trimesters had children with the highest cognitive scores. Interestingly, those who drank tea in only the first trimester saw no comparable benefits, suggesting that the second and third trimesters are key developmental windows where maternal tea intake can positively influence fetal brain development.
Tea vs. Coffee: A Notable Difference
Despite tea and coffee containing caffeine, the study found no significant association between maternal coffee consumption and children’s cognitive development. Researchers speculate that tea’s additional bioactive compounds—such as polyphenols and flavonoids—may contribute to the observed benefits. These compounds are known for their antioxidant and neuroprotective properties, potentially aiding brain development in utero.
The Science Behind Tea’s Benefits
Tea, mainly green and black varieties, contains neuroprotective catechins, which have been linked to improved brain function. Some studies suggest that these compounds can reduce oxidative stress, enhance memory, and support neural connectivity—factors may explain why tea-drinking mothers had children with higher cognitive abilities.
Additionally, the study employed Group-Based Trajectory Modeling (GBTM) to track maternal tea consumption patterns throughout pregnancy, offering a dynamic view of how changes in diet may impact fetal development. This approach strengthens the argument that sustained tea intake, rather than sporadic consumption, is key to these cognitive benefits.
Global Tea Consumption and Study Limitations
Tea drinking habits vary significantly across populations and countries. Approximately 76–78% of the tea consumed worldwide is black tea, 20–22% is green tea, and less than 2% is oolong tea. While black tea is more prevalent in Europe, North America, and North Africa, green tea dominates in Asia, and oolong tea is primarily consumed in southeastern China. Given that this study was conducted in China, its findings may not directly apply to other populations. Furthermore, the overall sample size was limited, and observational studies inherently have constraints in establishing causality. Additional large-scale studies are needed to validate these results and explore the potential role of different tea types in maternal and child health, As scientific interest in maternal nutrition continues to grow, this research underscores the potential for everyday beverages to influence early childhood development in meaningful ways. Tea is a staple drink in many cultures worldwide, and these findings could shape future dietary guidelines for pregnant women, reinforcing the importance of mindful nutrition during pregnancy.
Resumption of Airstrikes Raises Red Sea Shipping Risks
The resumption of daily airstrikes on Yemen-based Houthis since March 15 has presented a significant challenge to tea logistics as first-flush teas are en route to market.
This situation will increase delays for tea shipments from regions such as Darjeeling, impacting freshness and supply chain efficiency. The rerouting of tea from Kolkata to Amsterdam via the Cape of Good Hope adds 15-20 days, which increases costs by $2,500 to $3,500 to between $7,000 and $9,500 per container. Fuel expenses for an extra two weeks at sea rise by $900,000 to $1.8 million, depending on the vessel.
The cessation of hostilities between Israel and Hamas on Jan. 19 improved safe transit conditions, typically limited to bulk and low-value cargo. Since early February, forty-seven ships, including six owned by US or UK firms, have navigated the Red Sea safely. Egyptian President Abdel Fattah al-Sisi reports that monthly revenue losses have escalated to $800 million, contributing to a projected $7 billion decline in 2024. Due to ongoing security concerns, major shipping companies such as Maersk, MSC, and Mitsui OSK continue to avoid the route. War risk premiums have increased significantly (by as much as 2% of the ship’s value per transit).
Several workarounds have been implemented due to delays in tea shipments from East Asia, South Asia, and Africa following the initial missile attacks in November 2023.
Airfreight volumes from India to Europe have increased by 40% since February 2024, exceeding the 2019 weekly average. Rates have risen to $3.50 per kilogram for shipments greater than 1000 kg, a 158% increase compared to December 2023.
Rail transit usage has also increased for routes from Bahrain and Dubai via the UAE-Israel Land Corridor, which connects Dubai’s Jebel Ali Port to Israel’s Haifa Port through Saudi Arabia and Jordan. Dubai remains the world’s largest tea re-exporter by volume.
Growers in Africa, India, and Sri Lanka are seeking buyers in Southeast Asian markets that leverage shorter and more secure shipping lanes.
With the ceasefire ended, Israel has deployed ground forces into Gaza, and US forces have initiated airstrikes targeting Houthi infrastructure, including launch sites and weapons storehouses. The US Department of Defense has stated that operations will continue indefinitely until the threat to international shipping is neutralized.
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David Veal on the Future of the European Speciality Tea Association
By Dan Bolton
Since its establishment six years ago, the European Speciality Tea Association (ESTA) has implemented training programs leading to the certification of tea and coffee professionals, organized competitions to enhance the capabilities of tea baristas, and developed educational programs for consumers. The association has also organized tours to the tea lands and financed research and development to encourage innovation in tea.
ESTA’s outgoing executive director, David Veal, joins the Tea Biz podcast to discuss the association’s achievements, growth to 350 members, and future ambitions.
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