President Donald Trump has doubled tariffs on Indian imports to 50%, a move that economists and trade experts warn could significantly affect American consumers. The new levy, which took effect on Wednesday, is among the steepest duties imposed during Trump’s presidency and comes in response to India’s continued purchase of Russian oil.
The White House has argued that the measure is part of a broader effort to weaken Moscow’s oil economy as the U.S. pushes for a peace settlement in Ukraine. “This makes it harder for the Russians to get rich from their oil economy,” Vice President J.D. Vance said on NBC’s Meet the Press. The European Union has already banned most Russian oil products.
The U.S. imported more than $85 billion in goods from India in 2024, according to the Office of the U.S. Trade Representative. With two-thirds of America’s largest companies maintaining operations in India, analysts say the higher tariffs will reverberate through industries from textiles to food products.
A report by the Global Trade Research Initiative, an Indian research group, predicts Indian exports to the U.S. will shrink to under $50 billion by 2026. In the first six months of this year alone, the U.S. had already imported more than $56 billion worth of goods from India.
Seafood and textiles are among the hardest hit. India supplies a significant share of shrimp to the U.S., but farmers in Andhra Pradesh—already strained by the earlier 25% tariff—now face further setbacks. American buyers are increasingly turning to Ecuador, Indonesia, and Vietnam as alternative suppliers. The spice trade is also under pressure, with producers in Gujarat, Andhra Pradesh, and Tamil Nadu struggling to sell after exports initially surged by 17% between 2024 and 2025.
Textiles, jewelry, and apparel, which depend heavily on U.S. markets, are also bracing for losses. “This is an absolute shock,” leather footwear exporter Puran Dawar told NPR, warning of falling labor demand in India. American firms may now look to Bangladesh and Vietnam for garments, or to Belgium and Israel for diamonds and gold. Researchers caution that the disruption could eventually push up prices for clothing, carpets, and household goods in the U.S.
India’s gem and jewelry industry is particularly vulnerable. Kirit Bhansali, chairman of the Gem and Jewelry Export Promotion Council, told CBC News the tariffs could affect 175,000 workers in the sector, calling the industry “in trauma.”
There are some exemptions. Pharmaceuticals, semiconductors, and smartphones remain unaffected for now. India recently overtook China as the leading exporter of smartphones to the U.S., a development analysts say will help cushion the blow for both economies.
Still, with key consumer goods facing higher import costs, many economists warn that the full impact of the tariffs may soon be felt in American households.