Trump's 25% tariff on Indian goods could make these everyday items shockingly expensive in the US

Economic Times

5 days ago

Trump India tariff 25%: Millions of American households may soon feel a painful pinch at the checkout line from their medicine cabinets to their jewelry boxes and even their smartphones after US president Donald Trump announced a sweeping 25% tariff on Indian goods, as per a report.The tariffs, which take effect August 1, were announced just two days prior on Trump's social media site Truth Social platform, following months of stalled trade negotiations with India, according to a USA Today report.
He wrote, 'Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,' as quoted by USA Today.The new import levies come amid an existing baseline tariff of 10%, and the US president has also warned this week that most trading partners that do not negotiate separate trade deals could soon face new baseline tariffs of 15% to 20%, as reported by USA Today.India, the United States' top trading partner in 2024, exported $87 billion in goods to the US last year, including vital everyday products like pharmaceuticals, smartphones, and jewelry, according to the report. The US currently runs a $45.7 billion trade deficit with the South Asian nation, and many of its most imported Indian goods are essentials, not luxuries, as per data from the US International Trade Commission.
ALSO READ: Who will inherit Ozzy Osbourne's $220 million fortune? Here's who gets whatThe country supplies nearly one-third of its pharmaceutical exports to the US, most notably in the form of affordable generic medications, as per the report. Americans rely on these drugs to treat cancer, manage pain, control fevers, and prevent transplant rejection, among other conditions. Products like antineoplastic and immunosuppressive medications, analgesics, antipyretics and nonhormonal anti-inflammatory agents, Bandages, gauze, and other hospital basics are also on the list, as per the USA Today report.
Pharmaceutical imports from India grew by 16% last year, topping $9 billion, according to Reuters.
ALSO READ: iOS 18.6 is live — change these 10 hidden settings now to supercharge your iPhone In a major shift, India recently overtook China as the US's top smartphone supplier, driven in part by Apple moving more manufacturing to New Delhi amid existing China tariffs, as per the USA Today report. That pivot may now backfire for US consumers, with the cost of new phones potentially climbing, according to the report.Jewelry and precious stones, including unmounted diamonds and gold-plated pieces, could also carry heftier price tags, as per USA Today. The US imports more than $10 billion of these items from India annually, often as gifts or wedding jewelry, according to the report.Home linens such as bath towels, cotton sheets, and tablecloths, a $6 billion import market, may also see sharp increases, as per USA Today. India accounts for over a third of these products, often sold in big-box retailers and department stores, according to the report.Research from the Yale Budget Lab found earlier tariff hikes have already driven up US apparel and shoe prices by as much as 39% in some cases, according to the report. The new India-focused tariffs are expected to continue that trend.Consumers may also see price hikes on frozen shrimp, baby clothes, suits, and even solar panel components, categories where India has carved out a significant share of the US market, as per the USA Today report. When does the 25% tariff on Indian goods start?August 1, 2025. The announcement was made on July 30 via Truth Social.
Will my medications cost more? Yes, likely. India supplies a significant share of generic prescription drugs used in the US. A tariff may increase prices unless manufacturers or insurers absorb the cost.