Donald Trump Tariff / Trump's tariff bomb exploded on America itself, US people are facing the brunt of inflation!

Donald Trump Tariff: The impact of the heavy import duty imposed by US President Donald Trump on many countries around the world is now clearly visible on the pockets of American consumers. According to a recent Bloomberg report, a slight but significant increase in inflation rate was recorded in the US in July 2025. Retailers are gradually incorporating the increased tariff on imported goods into the prices, increasing the burden of expenditure on ordinary consumers. Along with this, the 50% tariff imposed on major trading partners like India has had a profound impact on global trade and the economy.

Increasing inflation pressure in the US

Economists in a Bloomberg survey have estimated that the core consumer price index (CPI) increased by 0.3% in July 2025, higher than the 0.2% in June. This is believed to be the fastest monthly increase since the beginning of this year. Core CPI does not include food and energy prices, which are usually volatile. Cheaper petrol prices kept the headline CPI limited to 0.2% in July, but the impact of tariffs is clearly visible in the prices of home decor and entertainment items. Inflation in the core services sector is stable for now, but experts believe the impact of tariffs could deepen in the coming months.

Items affected

Home decor: Increase in prices of imported furniture, lighting and other decorative items.

Entertainment products: Jump in the cost of electronics, gaming consoles and other entertainment equipment.

Clothing and footwear: Prices of imported clothing and footwear increased due to tariffs.

The Federal Reserve's challenge

The US central bank, the Federal Reserve, now faces a new dilemma. It has to assess whether increased tariffs can keep inflation high for a long time, especially when the labor market is showing signs of slack. Many companies are trying to avoid passing the full burden of tariffs on price-sensitive consumers. Retail sales data is expected to show a good increase in July, with incentives given on vehicle sales and online sales like Amazon Prime Day contributing. However, experts warn that this strength could be superficial, as real income growth declined in June.

Impact of 50% tariff on India

The temporary trade truce between the US and China is likely to end soon, but the Trump administration has already taken a tough stand on India. Angered by India's large-scale oil purchases from Russia, Trump first imposed a 25% and then an additional 25% tariff on India. This takes the total custom duty to 50%, the highest ever imposed by the US on a major trading partner.

Impact on India's exports

The move is expected to deal a huge blow to India's exporters, especially the gems and jewellery industry. The US is a major market for Indian jewellery, and 80-85% of the production from Mumbai's SEEPZ special economic zone (SEZ) goes to the US. The sector employs around 50,000 people. Experts say that this tariff will weaken India's export competitiveness, which can affect not only employment but also India's GDP growth.

Affected sectors

• Gems and Jewellery: Huge increase in the cost of diamonds, gold and other jewellery exported to the US.
• Textile industry: Prices of Indian clothes and textiles reduced competitiveness due to tariffs.
• Electronics and machinery: Electronics and machinery products imported from India also affected.

Impact on global trade

Trump's tariff policy has not only affected American consumers but also shaken the global supply chain. For countries like India, which have strong trade relations with the US, this tariff is a big blow. In response, the Indian government may also consider retaliatory tariffs or trade strategies, which could further increase tensions in global trade.