India’s Dominance in the U.S. Import Market.

India’s Dominance in the U.S. Import Market

In key categories such as cumin, lab-grown diamonds, carpets, and table linen, India accounted for over 60% of total U.S. imports in 2024—totaling approximately $3 billion in trade volume. 

Breaking this down:

• Cumin: ~92% of U.S. imports 

• Lab-grown diamonds: ~92%, a vital source for sustainable jewelry makers 

• Rugs & carpets: ~83% 

• Table linen: ~73%

U.S. Response: 25% Tariffs Starting August 1

On July 30, 2025, U.S. President Donald Trump announced a 25% tariff plus a penalty on Indian imports, effective August 1, citing India’s high domestic trade barriers and its energy ties with Russia.

Despite carved-out exemptions for pharmaceuticals and mobile phones, sectors like textiles, jewelry, carpets, and spices face direct exposure to the new duties.

Strategic Implications & Supply Chain Vulnerabilities

Impact on U.S. Buyers:

• Restaurants and fast-casual chains reliant on Indian cumin may see cost hikes or supply disruptions.

• Retailers depending on Indian handmade carpets or table linen will face price pressures or sourcing challenges.

• Jewelry brands such as Brilliant Earth, which depend heavily on Indian lab-grown diamonds, may lose margin flexibility.

Personnel import shock reverberates across packaging and logistics—fitting for such deeply entrenched Indian supply chains .

Competitor Advantage: Asia Steps In

With Indian goods facing 25% duties, rival suppliers in Vietnam, the Philippines, and Indonesia—whose tariffs are capped at 19–20%—stand to capture a $5 billion overlap in trade categories formerly dominated by India.

Shockwaves in Indian Export-Driven Sectors

According to Reuters, India's apparel and jewellery exporters—dependent on the U.S. for 40–70% of revenues—are already recalibrating:

• Major exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident face potential contract cancellations and workforce impact if tariffs hold beyond seasonal demand cycles .

• The Tata Hub of Tirupur (textiles) and Surat (diamonds) express urgent concerns about job losses without prompt trade resolution .

India’s $22 billion exports in apparel and jewelry to the U.S. (in 2024) now hang in the balance due to supply reshuffling toward lower-cost Asian markets .

Summary at a Glance

Category	India’s U.S. Market Share
Cumin	~92%
Lab-grown Diamonds	~92%
Rugs & Carpets	~83%
Table Linen	~73%

• India’s dominance in these niche import lines highlights its competitive strength.

• U.S. tariffs (25% + penalty) escalate potential disruption in sourcing and pricing.

• Exporters in apparel, home textiles, and jewelry face urgent uncertainty.

• Competitors with lower duties are poised to turn this into a strategic advantage.

Final Takeaway

India holds a disproportionate advantage in several U.S. import categories—a position that has historically locked in cost-effectiveness, scale, and reliability. But with the landslide 25% tariffs kicking in on August 1, U.S. companies must weigh the risks of higher costs, limited alternative suppliers, and potential supply bottlenecks.

U.S. importers now face a stark choice: absorb cost increases, diversify supply chains to nations with lower tariff burdens (e.g., Vietnam, Indonesia), or press for policy carve-outs to preserve continuity.

For India, this is a pivotal flashpoint—highlighting vulnerabilities in key export sectors and shifting the urgency for trade diplomacy in the weeks ahead.