Trump to add 25% tariff to Indian imports. Which everyday goods could be impacted?
President Donald Trump announced the United States will impose a 25% tariff on Indian goods starting Aug. 1, after months of negotiations over a limited trade agreement between the two nations appeared to fall through.
Trump announced the new tariff in a post on his social media app Truth Social on July 30, two days before a bevy of increased reciprocal tariffs will go into effect for dozens of nations on Aug. 1. These new import levies come amid an existing baseline tariff of 10%, and Trump warned this week that most trading partners that do not negotiate separate trade deals could soon face new baseline tariffs of 15% to 20%.
India, the world's fifth-largest economy, relies significantly on the U.S., counting it as its top trading partner in 2024, though China is close on its heels by a small margin.
Indian goods exports to the U.S. totaled $87 billion in 2024, with pharmaceuticals and jewelry among its top product types, followed by petrochemicals and textiles. Separately, services exports, mainly IT and professional services, were worth $33 billion last year.
The U.S. is India’s third-largest investor, and currently has a $45.7 billion trade deficit with the South Asian nation.
Here are some of the products the U.S. relies on most from India, according to data from the U.S. International Trade Commission:
Pharmaceuticals
The U.S. accounts for nearly a third of India's pharmaceutical exports, mainly cheaper versions of popular drugs, Reuters reports, with sales jumping 16% to about $9 billion last fiscal year.
Among the dozens of types of medications the U.S. imports from India, a few classifications make up a significant share. They are items like wadding, gauze and bandages; antineoplastic and immunosuppressive medications, including those used to treat cancers; and analgesics, antipyretics and nonhormonal anti-inflammatory agents, such as pain relievers and medications used to reduce fevers.
Smartphones
Though China and Vietnam were responsible for more than half of phones sent to the U.S. last year, India also produces a significant share, and looks to be gaining a firmer foothold in the market.
According to a new report, India has overtaken China in the last few months as the top exporter of smartphones to the U.S., following Apple’s pivot to center manufacturing in New Delhi amid tariff concerns. The share of U.S. smartphone shipments assembled in China fell from 61% to 25% over the past year, the research firm Canalys said, with India picking up most of the decline and increasing its smartphone volume by 240% roughly within the same time frame.
Jewelry and precious stones
Next to pharmaceuticals, jewelry and precious stones are among India's top products exported to American consumers. More than 30% of India's gems and jewelry exports go to the U.S., accounting for about $10 billion in annual trade in an industry that topped $30 billion in India in the 2023/2024 fiscal year.
These goods include unmounted or unset diamonds, precious metal jewelry and jewelry clad with precious metal − such as pieces plated with gold or silver.
Home linens
India is among the top countries responsible for imported home linens in the U.S., representing 36% of nearly $6 billion in imports, according to a New York Times analysis of government data.
These products include bathroom and kitchen linen made of terrycloth or cotton, along with bed and table linens.
India is also a leader in some types of imported clothing, such as activewear, shirts, baby clothes and suits. According to the Yale Budget Lab, the tariff hikes so far have disproportionately affected clothing and textiles, with consumers facing up to 39% higher shoe prices and 37% higher apparel prices in the short run.
Other products
The U.S. also relies on Indian imports of frozen shrimp and prawns, petroleum oils such as transformer oil and motor fuel, semiconductor technologies like solar panels and certain types of electrical machinery and parts.
Contributing: Reuters.
Kathryn Palmer is a national trending news reporter for Paste BN. You can reach her at kapalmer@usatoday.com and on X @KathrynPlmr.