From farms to food, US is highly dependent on India

Trump tariffs will make burgers and tractors expensive

From the food on their plates, the farms where it is produced to the homes and establishments where they consume it — Americans will every step of the way feel the pinch of President Donald Trump’s 10 percent flat tariff on Indian imports, a Moneycontrol analysis has found.

Americans will likely shell out more for burgers and sandwiches, as tariffs on Indian imports bite into their food budget.

And, it’s not just burgers and sandwiches, American farmers, Trump’s prime constituency, could be hit even harder.

Tractors, capsicums and cucumbers along with carpets and bed linen are the top items India imports to the US, Moneycontrol has found.

At $135 million, India accounted for nearly all tractors sold for agricultural use in the US in 2024 and more than 90 percent of carpet sales.

For cucumbers, including sandwich favourites gherkins, India’s share of US imports was a high 95.8 percent. India accounted for 60 percent of the capsicum imported to the US.

The levy is also likely to make lab-made diamonds more expensive, as the South Asian nation accounted for 92.6 percent or $983 million of exports.

Building a home is also expected to get more expensive, as nearly two-thirds of America’s imports in granite were from India.

Analysis, however, also shows that in terms of total trade, India’s impact on consumption would not be as high as China's.

While the US was dependent — having over 50 percent share of its imports controlled by India — for just 0.2 percent of its total shipments, China’s share was a higher 5 percent.

But that does not make tariffs on India insignificant. China controls the US electronics supply chain, and India its spices.

India accounted for 92 percent of US cumin imports, 67 percent of turmeric and 54 percent of sesame seeds.

Higher tariffs on India would only end up hurting the US more.

India was the second largest exporter of smartphones to the US in 2024, accounting for nearly 14 percent of its imports.

Trump on April 9 announced a 90-day pause on country-specific reciprocal tariffs, levying a flat rate of 10 percent on all nations except China.

Under the earlier plan, Indian goods were to face a 26 percent duty.