President Donald Trump’s decision to double tariffs on Indian imports to 50% could have significant repercussions for American consumers, potentially leading to price increases for a variety of textiles and even certain seafoods.
This levy against India, which became effective on Wednesday, is among the highest Trump has imposed on a foreign nation. The charge was notably doubled due to India’s purchasing of Russian oil, a practice Trump—who is threatening further economic sanctions on Russia as he attempts to broker a peace deal in the Ukraine war—has criticized. The European Union also has a ban on Russian oil.
Vice President J.D. Vance stated on Sunday that these tariffs against India would make it more difficult “for the Russians to get rich from their oil economy.”
Amidst these geopolitical developments, numerous businesses—and, consequently, consumers—are poised to feel the impact.
More than $85 billion in goods were sent to the U.S. from India in 2024, according to the Office of the U.S. Trade Representative. Furthermore, reports indicate that two-thirds of the largest U.S. companies have operations in India.
As the impact of the U.S. tariffs on Indian imports begins to take hold, here’s a look at how American consumers could feel the effects.
Shrimp and certain high-value food items
A Tuesday report by the Global Trade Research Initiative, an Indian research group, predicts that Indian exports to the U.S. will fall to just under $50 billion in the fiscal year 2026, due to the new tariff rates. By comparison, has been imported from India to the U.S. from January through June this year.
The heightened tariffs are set to particularly impact the shrimp industry, as India is one of the largest suppliers of seafood to the U.S.
Shrimp farmers in the southern Indian state of Andhra Pradesh have already been squeezed by the initial 25% tariff levied against India in early August, according to the report, and they now stand to be further impacted by the doubled rate. Researchers added that the U.S. initially responded to the tariffs by turning to alternative markets in Ecuador, Indonesia, and Vietnam to source the product.
A number of regional-specific food items are facing similar challenges. Spice industry workers in the Indian areas of Unjha, Guntur, and Erode have reported difficulties in selling products following the initial tariffs, researchers say, in contrast with the 17% increase in volume of spice exports recorded from 2024 to 2025.
American companies are now turning to businesses in Pakistan for basmati rice, Vietnam for spices, and Kenya and Sri Lanka for tea. These changes in location could well result in altered price markers presented to American consumers.
Textiles and apparel
Textiles, jewelry, and apparel stand to be heavily affected by the change, as these sectors rely on the U.S. for 35% or more of their global export share, according to the Global Trade Research Initiative.
“This is an absolute shock,” Puran Dawar, an Indian leather footwear exporter, is quoted as telling NPR. According to Dawar, 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.
Prior to the new tariff rate, India was heralded for its contributions. Now, the U.S. will likely turn to other countries to source these products, including Israel or Belgium for their diamond or gold needs, and Vietnam or Bangladesh for clothing. Many of these countries are still facing their own elevated tariffs, though Bangladesh lowered theirs from 37 to 20% earlier this month. (The rate levied against Bangladesh, the world’s second-largest garment supplier, is now the same as the import tax for Vietnam.)
For American consumers, who are already paying a higher price tag on their clothing goods, the new higher tariffs in India could have a knock-on effect.
Furniture, bedding, and carpets could face similar pains, especially if the tariffs lead to the potential shutdown of carpet factories in Bhadohi, Mirzapur, and Srinagar. Traditional Kashmiri carpet makers are worried about such challenges.
Researchers are also concerned that in light of the heightened levies, other countries could “potentially lock India out of key markets” even if the tariffs are one day rolled back.
“The entire industry is in trauma,” Kirit Bhansali, chairman of India’s Gem and Jewelry Export Promotion Council, told CBC News, explaining that the gem industry relies on a small profit margin. Bhansali estimated that around 175,000 gem industry workers could be affected by the tariffs.
Notable exemptions
Although many Indian goods are facing steep import taxes, the U.S. did outline exceptions for the Indian pharmaceutical industry, which similarly relies on the U.S. market.
Trump has signaled an intention to place a “small tariff” on pharmaceutical exports to the U.S., with the intention to increase the charge in a few years, but no official action has been taken.
Similar exceptions are in place for semiconductors and other electronics, as well as steel and aluminium, which face their own set of tariffs. Trump’s decision to make these exceptions is a strong asset for India’s economy and American consumers alike, especially as reports show that India has made significant strides when it comes to smartphone exports to the U.S.