‘We Don’t Know How to Survive.’ Tariffs on Indian Goods Squeeze Local Eateries

 

In 2020, after the pandemic devastated the restaurant industry, Pradeep Bhandari quit working as a manager at somebody else’s eatery and started his own. He and his uncle opened Kesari Indian Cuisine on the Upper West Side.

Nothing could be as bad as COVID, he thought.

Then came the tariffs, which he said have squeezed his profit margins to nothing.

“I really don’t want to increase prices,” said Bhandari, 37, an Indian immigrant raised in Nepal who moved to the U.S. nine years ago. His restaurant makes dishes that range from $7.95 vegetable samosas to $21.95 shrimp tikka masala. “It’s hurting everyone,” he added.

When President Donald Trump took office for his second term, he promised to “tariff and tax foreign countries to enrich our citizens.” He said the tariffs would encourage U.S. consumers to buy more American-made goods. He also saw tariffs as a form of punishment against countries for a variety of economic and political reasons.

In early August, Trump imposed a 25 percent import tax on nearly all goods arriving from India. He raised it to 50 percent on Aug. 27, which he called a “penalty” on the nation for buying Russian crude oil while that country continues its invasion of Ukraine. India’s government has called the tariffs “unfair, unjustified and unreasonable.”

A few days later, a federal appeals court ruled that the tariffs were illegal. On Sept. 9, the Supreme Court agreed to fast-track a hearing to November. In the meantime, the tariffs remain in place.

Bhandari, a U.S. citizen, said he voted for Trump in 2024, adding, “that was the biggest mistake.”

Experts say tariffs could take a big toll on both the U.S. and Indian economies. In 2024, U.S. goods imports from India totaled $87.3 billion, while exports to India amounted to $41.5 billion.

Meanwhile, some of New York City’s local businesses are bearing the brunt.

Muhammad Hussain Kamal runs a food stall in a corner of Jackson Heights, Queens, a neighborhood where 60 percent of residents were born outside of the U.S. The mustard oil that he uses to fry bhaji, a deep-fried fritter made out of chickpea powder, has nearly doubled from $21 to $40 this past month. Kamal, 50, now has no choice but to source some of his ingredients from individual sellers, he said in Bengali.

“Who suffers most is the common person,” said Jasbir “Jay” Singh, president of the India Association of Long Island. “If it’s political, [the tariffs] won’t last long. But if it’s economical, they will be here forever,” he said.

 

Jackson Heights is also home to a Patel Brothers store, an Indian-American supermarket chain in the U.S.

“It’s hard for ordinary people to afford things, so we are trying to take some burden on our shoulders,” said Anan Prajapati, manager of the supermarket. He has noticed people stocking up on essential items such as lentils, basmati rice, and wheat flour, before an even larger price increase hits the shelves.

The wholesale price of a 3.5-pound bag of ragi flour has jumped from $3.75 to $5. But the store hasn’t raised its retail price of $5.99, which leaves them with meager margins, according to an invoice viewed by Columbia News Service. They have, however, raised the price of chili powder, from $10.99 to $14.99 for a 3-pound bag, indicated by a sticker covering the original price tag.

The issue of rising prices for food staples has attracted the attention of some city officials.

“Whatever resources that we can find, and add more money to the budget for small business services, we are prepared to do” in response to the tariffs, said Shekar Krishnan, the City Council Member for District 25, which includes Jackson Heights. He did not specify when that would be, or what that might look like.

Back at Kesari Indian Cuisine, Bhandari has decided to reprint his menus and raise each item by $1. Even then, he said, his margins would be lower than before.

So, he is coming up with creative ways to make up for the price hike.

For items like turmeric, black pepper, and cashews, where the flavors don’t vary significantly, he’s shifted to local, more affordable sourcing. Earlier this year, he rushed to buy 60 10-pound bags of basmati rice, rather than the three to four he would typically purchase. He has one month’s worth left in stock.

Bhandari said that he no longer orders deliveries, and instead, drives to wholesale markets almost every morning. And he saves on labor costs because he employs family and friends. “I don’t have to pay them as much,” Bhandari said.

“Some places may not survive this,” he said. “Especially small businesses like us.”

Shivangi Sen contributed to this report.