SoCal Indian businesses bracing for 25% tariff increase: "Increased costs of running businesses daily"
In a significant move, President Trump has signed an executive order authorising a 25% tariff on goods imported from India, set to take effect from August 1, 2025 [1]. This decision is causing a ripple effect in the Los Angeles area, where many businesses depend on Indian imports.
For instance, Devraj Keray, the owner of Pioneer Cash & Carry, a large Indian grocery store in California, has been notified that prices will go up by 25% [2]. Similar concerns have been echoed by other business owners. Dalbir Singh Ghotra, the owner of Kavita Grocery, fears that the tariff will "spell disaster for small businesses like us" [2]. Sneh Prasad, the owner of Bollywood Styles, has reported a dip in recent sales to the lowest levels recorded in roughly 18 years [2].
The tariff hike is expected to force businesses in the L.A. area to raise prices, which could lead to lower consumer demand [2]. Keray, the owner of Pioneer Cash & Carry, has announced that retail prices will have to increase to cover added costs, although this is expected to reduce customer purchases but not eliminate demand for staple products [2].
The economic uncertainty created by these tariffs is impairing local businesses' ability to plan, invest, and expand in Southern California, a region heavily integrated in global trade [3]. Business leaders in Los Angeles have stated that tariffs have an outsized impact on their economy, interfering with budgeting and long-term deals [3].
Several sectors, including Indian grocery stores, apparel stores, and others, are facing challenges such as price increases, sluggish sales, and difficulty maintaining profitability [2][3]. Krutika Pranav, the manager at Highglow Jewelers, expressed concern about possible immigration raids targeting businesses that attract primarily immigrant customers, which could lead to a slowdown in foot traffic and sales [2].
The tariffs stem from a US policy move imposing a 25% duty on all Indian exports, partly as a response to Indian trade barriers and geopolitical issues [1][4]. Some Indian industry sectors, like textiles, are seeking to offset losses by diversifying into other markets such as Europe and Asia [5].
The economic downturn caused by the tariff hike is evident in the number of people reporting to work in the private sector in California, which has decreased by 3.1%, a downturn only recently matched by the COVID-19 lockdown [6]. The total value of Indian goods exports to the U.S. was over $87 billion in 2024, according to the Office of the United States Trade Representative [7].
President Trump's meeting with Indian leader Narendra Modi and the subsequent announcement of the tariff has sparked concerns among Indian business leaders, with Prashant "Peter" Patel, the president of the Indian American Business Assn. and Chamber, expressing a general sense of anxiety [2]. The tariff situation is seen as a chess game by some, with consumers potentially becoming victims [2].
In Artesia's Little India area, a cultural hub for the Indian community, the tariff hike may lead to a decrease in customer spending due to increased prices [8]. The overall impact of the tariff hike on the Los Angeles economy remains to be seen, but it is clear that it is causing significant disruption for many businesses in the region.
References: 1. Trump imposes 25% tariff on Indian goods 2. Impact of tariff hike on Indian imports in Los Angeles 3. Tariffs hamper business growth and investment in Los Angeles 4. US-India trade war escalates with tariff hike 5. Indian textile industry seeks to diversify markets amid tariff hike 6. California private sector employment continues to decline 7. India-US trade relations in 2024 8. Artesia's Little India braces for impact of tariff hike
- The 25% tariff on goods imported from India, to be enacted in 2025, is causing a stir in Los Angeles, where many businesses depend on such imports.
- Devraj Keray, owner of Pioneer Cash & Carry, a large Indian grocery store in California, expects to see prices increase by 25% due to the tariff.
- The tariff is causing economic uncertainty for businesses in the L.A. area, making it difficult for them to plan, invest, and expand in Southern California.
- Sectors like Indian grocery stores, apparel stores, and others are facing challenges such as price increases, sluggish sales, and difficulty maintaining profitability due to the tariffs.
- The total value of Indian goods exports to the U.S. was over $87 billion in 2024, according to the Office of the United States Trade Representative.
- The tariff hike is potentially leading to a decrease in customer spending in Artesia's Little India area, a cultural hub for the Indian community, due to increased prices.
