August 28, 2025

Get ready for sticker shock! President Donald Trump has sharply doubled tariffs on Indian imports, raising them to a whopping 50%. This heavy blow, one of the highest tariffs imposed by Trump on any country, started hitting from Wednesday. The reason? India’s continued purchase of Russian oil, which Trump strongly opposes amid efforts to impose economic pressure on Russia during the Ukraine war. Even the European Union has banned most Russian oil products. Vice President J.D. Vance explained on NBC’s Meet the Press that these tariffs aim to make it "more difficult for the Russians to get rich from their oil economy." But this bold sanction sends ripples far beyond politics. Over $85 billion worth of goods from India was imported to the U.S. in 2024, and two-thirds of the biggest American companies operate in India, reports the New York Times. So when tariffs soar, businesses and consumers both feel the burn. Indian shrimp, a favorite on American plates, is hit hard. Shrimp farmers in Andhra Pradesh were already struggling under a 25% tariff imposed in early August. Now, with 50%, the pain doubles. The U.S. is already looking to Ecuador, Indonesia, and Vietnam for alternatives. Similar woes plague spice farmers in Unjha, Guntur, and Erode, who are finding it tough to sell their goods after tariffs went up, despite a record 17% increase in spice exports from 2024 to 2025. American buyers are turning to Pakistan for basmati rice, Vietnam for spices, and Kenya and Sri Lanka for tea. This shift could mean pricier grocery bills for you. Textiles, jewelry, and apparel—huge export industries that get over 35% of their foreign income from the U.S.—are in deep trouble. Puran Dawar, an Indian leather footwear exporter, told NPR, "This is an absolute shock." He warned that the tariffs will shrink job chances in India as companies scramble for other buyers. The U.S. might now buy diamonds and gold from Israel or Belgium, and clothes from Vietnam or Bangladesh (which recently got its tariffs lowered from 37% to 20%). For American shoppers, higher prices on clothes are likely. Furniture, bedding, and exquisite Kashmiri carpets face a gloomy future, too. Carpet makers in Bhadohi, Mirzapur, and Srinagar worry that factories may have to shut down. Kirit Bhansali, chairman of India's Gem and Jewelry Export Promotion Council, told CBC News, "The entire industry is in trauma," adding that around 175,000 workers in gems are at risk, as the sector works on thin profit margins. But it’s not all gloomy. Indian pharmaceuticals, semiconductors, steel, aluminum, and smartphones have been given a breather with tariff exemptions. Trump has mentioned a "small tariff" might apply to medicines later, but nothing official yet. India has even surpassed China as the biggest smartphone exporter to the U.S., making this exemption a big win for both countries. In short, Trump’s tariff hike is a fiery move in global politics but a troubling one for many businesses and consumers. As American shoppers might soon notice higher costs on shrimp, spices, clothing, and jewelry, Indian workers face uncertain futures. The ripple effects of this decision could last long and wide.

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Tags: Trump tariffs, India imports, Us-india trade, Indian seafood, Textiles export, Economic impact,