Why this matters now
Spices are rarely the direct target of tariffs, but trade policy changes often reshape the cost structure behind sourcing: from duties and taxes to logistics, compliance, and pricing risk.
In January 2026, several developments at the EU, Asia, and global level introduced changes that buyers, importers, and sourcing managers should consider when planning contracts and landed costs for the year ahead.
EU–India Free Trade Agreement: A Structural Shift, Not an Overnight Change
In late January 2026, the European Union and India finalized a long-negotiated Free Trade Agreement (FTA). Once fully implemented, the agreement is expected to eliminate or reduce tariffs on approximately 96–99% of goods traded between the two markets, representing tariff savings estimated at around €4 billion annually.
Why this matters for the spice trade
India is one of the world’s largest producers and exporters of spices, herbs, and value-added seasoning products. While spices themselves are not always at the center of trade negotiations, the agreement can affect the spice sector in several indirect but meaningful ways:
- Lower import costs for equipment and inputs: Reduced EU export tariffs into India may lower costs for processing machinery, packaging materials, and quality-control equipment used by Indian suppliers.
- Long-term pricing stability: Preferential trade terms can support higher export volumes and more predictable pricing structures over time.
- Competitive positioning: EU buyers sourcing from India may see cost advantages compared with suppliers operating outside FTA frameworks.
Important caveat
The agreement still requires ratification and phased implementation. Tariff reductions will not apply uniformly or immediately. Buyers should monitor:
- Product-specific tariff schedules
- Transition periods
- Rules of origin requirements
This is a medium- to long-term structural change, not an instant price shift.
EU–US Tariff Tensions: No New Duties, But Risk Remains
In January 2026, the European Union confirmed it would extend the suspension of a retaliatory tariff package valued at €93 billion against U.S. goods. These measures had been prepared in response to earlier trade disputes but were postponed to allow continued negotiations.
Relevance for spice buyers
Although spices are not part of this tariff package, ongoing EU–US trade friction matters because it can influence:
- Freight rates and insurance premiums
- Currency volatility
- Compliance and documentation scrutiny
- Cost of packaging, machinery, and logistics services
For buyers, this reinforces the need to treat tariffs as a risk variable, not a static number.
Thailand Ends Low-Value Import Tax Exemption
One of the most immediate operational changes in January 2026 occurred in Thailand.
As of 1 January 2026, Thailand removed the long-standing import tax exemption for low-value online purchases. Previously, goods valued under THB 1,500 (≈ USD 44) entered duty-free. Now:
- VAT (7%) and import duties apply from the first baht
- The rule covers all international e-commerce imports
Practical impact on spice sourcing
This change directly affects:
- Small sample shipments
- Trial orders
- Online purchases of ingredients, packaging, or accessories
Key implications:
- Landed costs for samples increase immediately
- Cost models must include VAT and duty even for low-value shipments
- Accurate HS code classification becomes more important to avoid overpayment
For companies relying on frequent international sampling, this policy removes a cost buffer that had existed for years.
What These Changes Mean in Practice
Cost planning
- Expect gradual tariff benefits from the EU–India FTA, not instant savings
- Update landed-cost models for Southeast Asia, especially Thailand
- Build tariff sensitivity into 2026 pricing assumptions
Sourcing strategy
- Monitor FTA eligibility and rules of origin when sourcing from India
- Diversify suppliers to reduce exposure to geopolitical trade shifts
- Review contracts for flexibility around duties and taxes
Risk management
- Treat tariffs and import taxes as dynamic inputs
- Reassess sample-shipping strategies and consolidation options
- Stay aligned with customs brokers on classification accuracy
Planning Notes for 2026
- Trade liberalization and protectionism are happening at the same time
- Tariffs may not hit spices directly, but they affect the ecosystem around them
- Buyers who model duties, taxes, and compliance early avoid margin surprises later
Conclusion
January 2026 did not introduce sweeping new spice-specific tariffs, but it did reinforce an important reality: trade policy continues to influence spice sourcing indirectly but materially. The EU–India FTA points toward longer-term cost efficiencies, while policy shifts like Thailand’s import tax change require immediate operational adjustments. For B2B buyers, staying informed and flexible remains essential.
Sources
European Commission. (2026, January). EU–India Free Trade Agreement press release.
Reuters. (2026, January 23). EU suspends €93 billion retaliatory tariff package against the United States.
Brussels Times. (2026, January 27). EU signs historic trade deal with India.
The Nation Thailand. (2026, January 1). Thailand applies VAT and import duty to all online imports.
Forvis Mazars. (2025). Thailand e-commerce import tax changes effective 2026.