President Donald Trump’s aggressive tariff policies have started to show their impact on the American populace. From expensive dinner bills to costlier utilities, the average American is feeling weighed down by Trump’s trade war.
According to a recent ABC News/Washington Post/Ipsos survey, seven in ten Americans have expressed that they are paying more for groceries this year in comparison to last. Meanwhile, six in ten stated that their utility bills have become more expensive, reported Moneycontrol.
Further, the survey found that healthcare, fuel, and housing prices have increased as well.
Inflation Unites The Country
The inflationary pain has proved to be a rare unifier in a divided America. According to the survey, 89 per cent of Democrats, 73 per cent of independents, and even 52 per cent of Republicans admit grocery prices have surged.
Women, the poll adds, are feeling the strain of rising costs more than men. And as the US Supreme Court reviews the legality of Trump’s tariffs, public patience appears to be wearing thin, nearly 65 per cent of Americans now disapprove of the trade policy, blaming it for stoking inflation and hurting the economy.
Tariffs Go Global And India Feels The Heat
Domestically, the tariffs have done no favour to the Indian economy either. Trump’s administration went full throttle on its tariff offensive, with import duties reaching as high as 50 per cent on several trading partners, India among them.
In August 2025, Washington levied an additional 25 per cent secondary duty, bringing total tariffs on Indian goods to 50 per cent, after New Delhi refused to halt its oil imports from Russia. The president accused India of ‘fuelling Moscow’s war machine’.
The results were swift and severe. Between May and September 2025, India’s exports to the US plunged 37.5 per cent, from $8.8 billion to $5.5 billion, according to the Global Trade Research Initiative (GTRI).
The tariffs, which began modestly at 10 per cent in April before ramping up, dealt a blow to nearly every major export sector. Even tariff-free products, making up a third of India’s shipments, collapsed by 47 per cent.
Pharmaceutical exports tumbled 15.7 per cent, industrial metals and auto parts by 16.7 per cent, aluminium by 37 per cent, copper by 25 per cent, auto parts by 12 per cent, and iron and steel by 8 per cent. Labour-intensive industries, including textiles, gems and jewellery, chemicals, agri-foods, and machinery, which account for 60 per cent of India’s US-bound exports, fell by a sharp 33 per cent, GTRI data showed.
India’s Backup: Finding New Buyers
Yet amid the tariff storm, India’s exporters are beginning to chart new waters. A government-driven diversification plan, rolled out soon after Washington’s 50 per cent levy in August, is starting to pay dividends.
When tariffs doubled between August 7 and August 25, exporters rapidly began scouting for alternative destinations across Asia, Europe, and the Middle East.
Fresh trade data for September, reported by Times of India and Economic Times, reveal promising green shoots of recovery. Cotton garment exports to the UAE, France and Japan rose sharply, even as shipments to the US dipped 25 per cent year-on-year.
Marine products saw a dramatic realignment, exports to the US fell 26.9 per cent, but shipments to China, Vietnam and Thailand jumped by over 60 per cent.
Tea exports found new takers in the UAE, Iraq and Germany despite a 22 per cent fall in the American market. Basmati rice exports to Iran soared six-fold to $41.07 million, while handmade carpets gained traction in Canada and Sweden despite a 26.1 per cent drop in the US.
Diversification Not A Last-Moment Tactic
Commerce ministry officials maintain that the pivot isn’t just a stopgap measure. “Export diversification is visible and is supported by India’s free trade agreements, production-linked incentive schemes, and integration with global supply chains,” an official told Economic Times.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), agreed: “Export diversification has started to happen and this is healthy for the growth of India’s exports,” he said.
The ministry has since identified 40 priority importing countries across North America, Europe, Asia, Africa, Latin America and Oceania, representing nearly three-fourths of global demand for textiles and apparel. The goal is ambitious: to expand India’s global market share from 5–6 per cent through targeted trade outreach and participation in international fairs.
India Still Heavily Dependent On The US
Despite visible progress, India’s reliance on the US market remains deep. Around 60 per cent of India’s carpet exports, 30 per cent of gems and jewellery, and 40 per cent of apparel still depend heavily on American buyers.
Meanwhile, talks between New Delhi and Washington over a Bilateral Trade Agreement (BTA) remain stalled, even as both nations aim to push bilateral trade to $500 billion by 2030.
In September, India’s overall merchandise exports grew 6.7 per cent year-on-year to $36.38 billion, but shipments to the US slipped 11.9 per cent to $5.46 billion. Whether this strategy sticks or not, however, is something only time can tell. For now, all eyes remain on the leaders of the two countries in hopes of a better trade deal.
