Trump’s 50% tariffs on India could make your everyday shopping way more expensive - here's how it will impact

Price of Indian goods in US: American shoppers may soon see higher prices on a wide range of everyday goods after US president Donald Trump doubled tariffs on Indian imports to 50%. The decision, which took effect on Wednesday, is already impacting key sectors like food, clothing, and home goods, as per a report.

The move was triggered by India’s purchase of Russian oil, something Trump has strongly opposed as he pushes for tougher sanctions on Russia during ongoing efforts to negotiate peace in the Ukraine war, according to a Time report. The European Union has also banned most Russian oil products, as per the report.

Vice president JD Vance said during an interview on NBC’s Meet the Press on Sunday that the tariffs against India would make it more difficult “for the Russians to get rich from their oil economy,” as quoted by Time.


But for American consumers, the consequences may show up in rising grocery bills, clothing tags, and fewer options on store shelves, according to the report.

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Seafood Prices Could Spike as Shrimp Imports Take a Hit

India is a major supplier of shrimp to the US, and the seafood industry is already feeling the squeeze. Shrimp farmers in Andhra Pradesh were impacted by the earlier 25% tariff, and now face further pressure under the new 50% rate, as reported by Time.

Importers have started turning to countries like Ecuador, Indonesia, and Vietnam to source shrimp instead, according to the report.

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Spices and Speciality Foods May Disappear from Shelves

Meanwhile, other regional foods are also being affected. Spice workers in Indian towns like Unjha, Guntur, and Erode have faced challenges in selling their products since the initial tariffs were introduced, as per the Time report.

In response, US buyers are beginning to turn to Pakistan for basmati rice, Vietnam for spices, and Kenya and Sri Lanka for tea, as reported by Time. These shifts may lead to changes in pricing and availability for American consumers, according to the report.

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Clothing, Jewelry, and Footwear Among Most Affected

Clothing and jewelry are among the most affected categories. These sectors rely heavily on the US market, with the US buying more than 35% of India's global exports, as per the Time report.

Indian leather footwear exporter, Puran Dawar said, "This is an absolute shock," adding that the short-term impacts of the tariffs will reduce Indian domestic labor opportunities as companies scramble to find other markets to sell their goods to, as reported by Time.

Before the new tariffs, India was seen as a low-cost production hub. Now, US companies are looking elsewhere, including to Israel or Belgium for diamonds and gold, and to Vietnam or Bangladesh for garments, according to the report. Some of these countries are still facing high tariffs too, though Bangladesh recently negotiated theirs down from 37% to 20%, matching Vietnam’s rate, according to the report.

Chairman of India's Gem and Jewelry Export Promotion Council, Kirit Bhansali said that, “The entire industry is in trauma," as he explained that the gem industry relies on a small profit margin and estimated that about 175,000 gem industry workers could be affected by the tariffs, as reported by Time.

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Home Goods Like Carpets and Furniture Could Get Pricier

Furniture, bedding, and carpets may also see price increases, as per the Time report. Indian carpet producers in places like Bhadohi, Mirzapur, and Srinagar are reportedly worried about factory shutdowns if the demand continues to fall, according to Time.

Pharmaceuticals and Smartphones Are Exempt For Now

However, not everything is subject to the tariff increase. Indian pharmaceuticals remain exempt for now, even though Trump has said he may introduce a “small tariff” on them in the future, according to the report. No official action has been taken yet.

Electronics like smartphones are also exempt. India has become a key exporter of smartphones to the US, recently surpassing China in this sector, as per Time. Steel, aluminium, and semiconductors are covered under separate tariff policies, according to the report.

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India-US Trade Could Shrink

In 2024, the US imported more than $85 billion worth of goods from India. That figure could drop sharply, the Global Trade Research Initiative predicts Indian exports to the US will fall to just under $50 billion by fiscal year 2026 due to the high tariff rate, as reported by Time.

FAQs

Why is the US placing 50% tariffs on Indian goods?
The decision is a response to India’s purchase of Russian oil, which Trump has criticized during efforts to increase sanctions on Russia.

How will this impact food prices in the US?
Everyday groceries like shrimp, rice, and spices may become more expensive or harder to find, as US buyers shift to new suppliers.