US duties on many Indian imports reached 50% in August 2025, raising costs for American importers and putting pressure on Indian exporters. Cost-of-living concerns dominated a pre-election poll as Republicans suffered setbacks in the 2026 US midterms.
Trump Tariffs On India Reached 50%
The Trump administration announced a 10% baseline tariff on imports in April 2025 and initially set a 26% reciprocal rate for India. Washington later set India’s rate at 25% and added another 25% levy in August over India’s continued purchases of Russian oil. The combined rate reached 50% on many Indian goods.
US importers paid the duties when shipments cleared customs. Businesses could absorb the extra cost, negotiate lower prices with suppliers or pass some of it on to customers. Indian exporters also faced pressure as shipments to the US fell after the higher duties took effect, according to the Kiel Institute for the World Economy.
Trump Tariffs Raised Costs For US Buyers
The Kiel Institute analysed more than 25 million shipment records covering nearly $4 trillion in US imports. It found that US buyers bore about 96% of the tariff burden studied, while foreign exporters absorbed roughly 4%. The estimate covered a broad set of US imports. How much shoppers ultimately paid depended on how individual businesses priced their goods.
Indian products illustrate where that pressure showed up. Credit rating agency ICRA pointed to higher wholesale costs for cotton clothing and home linens. India’s Gem and Jewellery Export Promotion Council highlighted higher costs for American jewellers buying polished diamonds and fine gold jewellery. US businesses sourcing Indian auto parts also faced higher costs for components such as engine parts and castings.
Trump Tariffs And The Midterm Cost-Of-Living Vote
A Reuters/Ipsos poll conducted before the election found that 48% of registered voters named the cost of living as the issue most likely to influence their vote. Democratic norms came second at 26%, followed by immigration at 13%. Nearly half of respondents said their household finances had worsened since Trump returned to office in January 2025, while 13% said they had improved.
Democrats secured control of both chambers of Congress in the midterms, with some races still being counted at the time of publication. The polling captured a broader concern about affordability as voters weighed their household budgets. Tariffs were one part of that economic picture, adding costs for US businesses that imported goods and putting pressure on the prices they charged.
