New York’s Indian restaurants are grappling with significant challenges due to Donald Trump’s recent tariff increases on Indian imports, which have raised ingredient costs and diminished profits.
New York’s celebrated Indian restaurants , once the toast of Wall Street executives and food critics alike , are now facing a new kind of spice challenge. The culprit? Donald Trump’s steep tariff hikes on Indian imports, which have sent ingredient costs soaring and profit margins tumbling, said a report by TOI.
On July 31, President Trump announced a move to double tariffs on most Indian exports to 50%, with the measure taking effect on August 27. While the US Supreme Court is reviewing the legality of the order, its economic fallout is already being felt across restaurant kitchens, grocery stores, and snack manufacturers that depend on Indian produce.
“People don’t mind paying $35 for pasta, but Indian food still carries the perception that it should be cheap,” said Chef Salil Mehta, who runs the acclaimed Kebab aur Sharab and other restaurants under the Fungi Hospitality Group to ET. “Margins are getting slimmer , it’s survival of the fittest.”
According to Mehta, the price of a 40-pound basmati rice bag has shot up from $30 to $45, while chilli powder now costs $10.50, up from $7. He has raised entree prices by around $5, but admits profits have still taken a hit.
At Lungi, another popular Indian spot, Chef-owner Albin Vincent is battling similar headwinds. “Our ingredient costs are up by roughly 25%,” he said. “If we raise prices, we risk losing customers who are already sensitive to menu changes.”
Even newer entrants are feeling the squeeze. Passerine owner Maneesh Goyal said the cost of imported ghee has surged from $150 to $220 per case , a 46% jump. “As a new Indian restaurant, we don’t yet have the flexibility to increase prices,” he explained.
While JKS Restaurants CEO Pavan Pardasani said their US outlets are yet to be impacted, others , like Chef Mohammad Tarique Khan of Hyderabadi Zaiqa , are struggling to absorb rising costs. “Rice prices have gone from $45 to $69 for a 25-lb bag, and I haven’t raised prices because most of my customers are local residents and students,” Khan said.
The pain isn’t limited to fine dining. Snack makers and packaged food companies are also grappling with supply delays and inventory shortfalls. Doosra’s founder, Kartik Das, who used to import boondi and amchur from India, said uncertainty around tariff rates has forced him to seek US -based suppliers.
In Virginia, Keya Wingfield, founder of Keya’s Snacks, said the new tariffs have been “astronomical.” “A 200-pound air shipment recently incurred a $1,700 freight tariff,” she said. “Money we could have used for advertising or deliveries has gone straight to tariffs.”
