How Trump’s Tariff War Will Make Basmati Rice, Spices, and Other Products More Expensive

US Tariff Hike Impact: In 2024, the total trade between India and the US reached $129.2 billion, with India exporting $87.4 billion to the US and importing $41.8 billion from the US. The trade relations between India and the US are strong, with the US being India's second-largest trading partner.

However, after Donald Trump assumed office, the US began increasing tariffs on various countries. Initially, tariffs were imposed on Canada, Mexico, and China, and now, on April 2nd, the US announced reciprocal tariffs on India as well. This move will affect both India and the US.

The reciprocal tariffs imposed by the US on countries including India will have consequences. Not only will Indian businesses face the impact of rising tariffs, but American consumers will also feel the heat. As the cost for companies rises, they will compensate for it by increasing prices. This increase in prices will lead to inflation in the US as well.

Products That Will Become More Expensive from India:

India exports several products to the US, including:

Makhana, Frozen Shrimp, Spices, Basmati Rice, Cashews, Fruits & Vegetables, Oil, Sweeteners, Processed Sugar, Confectionery, Nuts & Dried Fruits, Animal Feed, Petroleum, Raw Diamonds, LNG, Gold, Coal, Waste Materials, Almonds, Defense Products, Engineering Goods, Electronics, Pharmaceuticals.

If the US increases tariffs on these products, they will become more expensive for American consumers. Basmati rice, which the US imports in large quantities, will see a price hike, which will also impact India’s exports.

Economic Impact:

In addition to the increased tariffs, Indian jewelry brands may face more competition in the US market. Indian sarees and kurtas, which are quite popular in the US, may become pricier due to the tariffs. This will make it more expensive for Indian companies to do business in the US, ultimately affecting the trade between India and the US.

The hike in tariffs will lead to higher prices for several of India's major export products, contributing to a rise in India’s trade deficit. This will also have a direct impact on India's economy.