Adidas-Nike Shoes, iPhones & More: List of Items That Would Get Costlier in India After Trump's 26% Tariff

Washington DC: In a significant move that could impact the Indian economy, US President Donald Trump on Wednesday announced 26 per cent tariffs on Indian goods. This reciprocal tariff, which President Trump emphasized as "half" the rate India charges the US, is expected to have a ripple effect on a wide range of products, from iPhones to jewellery, and agriculture.

Trump's announcement, made on April 2, states that these tariffs are a response to India's trade policies, which, according to the US president, include a "very tough" tariff structure. India currently imposes a 52% tariff on American goods, a rate that Trump claims is damaging the US trade interests.

"Their Prime Minister ( Narendra Modi ) just left (US recently)...he is a great friend of mine, but I said to him that 'you're a friend of mine, but you've not been treating us right'. India charges us 52 per cent, so we will charge them half of that - 26 per cent," he said.

The trade between India and the US is substantial, with India exporting $77.5 billion worth of goods to the US in FY24. The US imports electronics, gems, jewellery, pharmaceutical products, machinery, and refined petroleum from India, while also exporting high-value goods like cars, machinery, and medical products.

Which Products Will Cost More?

• Nike, Adidas: One of the most immediate impacts of Trump's tariff will likely be felt by consumers in India as products like Nike and Adidas shoes, iPhones, and other electronic gadgets experience price hikes. Take a look at the list:
• iPhones: For Apple fans in India, the situation might be challenging. iPhones, along with other popular Apple products like AirPods, iPads, Apple Watches, and Macs, are produced in Asia, including countries like Vietnam, Malaysia, and Thailand are likely to get more costly with Trump’s tariffs, ranging from 24 per cent to 46 per cent on goods imported from these countries.
• While these price increases will affect global markets, India is expected to be one of the hardest-hit countries due to its dependence on Apple products.
• Gems, Jewellery: Another one of the sectors most vulnerable to the new tariffs is the gems and jewellery industry. With a significant share of its exports directed to the US, the sector is expected to bear the brunt of the tariffs, especially with rising gold prices.
• Food sector: Additionally, Indian exports like shrimp, basmati rice, and buffalo meat, which enjoy large markets in the US, are also expected to face new hurdles in terms of pricing, leading to uncertainty in these trade flows.

Trump's tariff structure also includes other major countries such as China (34%), the European Union (20%), Vietnam (46%), and Taiwan (32%). Countries like Japan, the UK, Bangladesh, and Pakistan are also facing steep tariffs, adding further complexity to global trade dynamics.