India Dominates Key US Imports: Over 60% Share in Cumin, Lab-Grown Diamonds, and Textiles

Despite facing a steep 25% tariff from August 1, India continues to dominate key segments of the US import market. The US relies heavily on India for products like cumin, lab-grown diamonds, home furnishing textiles and carpets, highlighting the challenge of replacing Indian suppliers in these sectors, as per news reports.

India's Stronghold in US Imports

As per the Moneycontrol report, in 2024, India accounted for 92% of US cumin imports, 83% of carpets and rugs, and 73% of table linen. It also led to lab-grown diamond supplies, a critical segment for sustainable jewellery brands. In total, India controlled over 60% of US imports worth more than $3 billion across these categories. Such dominance means sourcing alternatives would come at a cost, both logistical and financial, for many US businesses.

Trump Administration Announces Steep Tariffs

On July 30, 2025, President Donald Trump imposed a 25% tariff plus additional import penalties on Indian goods. The move was attributed to India’s high import barriers and ongoing oil trade with Russia. These new duties begin from August 1 and are expected to impact sectors including textiles, leather, electrical equipment and seafood supplies.

Industries Most at Risk

While pharmaceuticals and mobile phones received exemptions, the textile and jewellery sectors face direct hits. Brands dependent on Indian lab-grown diamonds or handmade carpets may struggle to maintain margins. Fast-casual chains that consume Indian cumin could encounter ingredient inflation, affecting popular food items across the US.

Read More: India Sees $1.4 Billion FPI Inflows in June 2025, Driven by ETFs Amid Active Fund Outflows!

Competition and Shifting Trade Routes

Countries like Vietnam, the Philippines and Indonesia are eyeing the opportunity created by the tariffs. With duties ranging between 19% to 20%, these nations are positioned to seize roughly 25% of overlapping trade impacted by the new US tariffs, equal to approximately $5 billion in trade value.

Conclusion

The US’s decision to levy steep taxes on Indian goods could disrupt high-dependence sectors. However, India’s established lead in vital imports like cumin and diamonds makes replacement less immediate. Over time, trade dynamics within Asia may evolve as competitors step into the gap.

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