Phones, jewelry, linens: Which products could cost more due to Trump's India tariffs?
President Donald Trump announced the United States will impose an additional 25% tariff on Indian goods, bringing import levies on some items as high as 50%.
The Wednesday, Aug. 6, order from the president comes less than a week after the first round of 25% tariff hikes were announced for the South Asian nation and significant U.S. trading partner. Trump cited New Delhi's continued imports of Russian oil as the reason behind this newest measure, sharply escalating tensions between the two countries after months of negotiations over a possible limited trade agreement fell through.
The new tariffs on some Indian goods would be among the steepest faced by any U.S. trading partner. Trade analysts warned the tariffs could severely disrupt Indian exports, according to Reuters. The president's order says the additional 25% tariff will go into effect 21 days after the previously-announced 25% tariff, which was set to take hold Aug. 7.
Trump announced the initial 25% tariff in a post on his social media app Truth Social on July 30, two days before a bevy of increased reciprocal tariffs went into effect for dozens of nations on Aug. 1.
India, the world's fifth largest economy in 2024, relies significantly on the U.S., counting it as its top trading partner last year. Indian goods exported to the U.S. totaled $87 billion in 2024, according to the Office of the U.S. Trade Representative, 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 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, as previously reported by Paste BN.
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 and supplies 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. About 30% of India's gems and jewelry exports go to the U.S., accounting for about $10 billion in annual trade, said Kirit Bhansali, chairman of the Gem and Jewellery Export Promotion Council of India, per Reuters.
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; Joey Garrison, Paste BN.
Kathryn Palmer is a national trending news reporter for Paste BN. You can reach her at kapalmer@usatoday.com and on X @KathrynPlmr.