Why Tariffs Could Be a Wake-Up Call for Indian Youth to Go Local
A few weeks ago, while scrolling through my phone, I came across a US-based influencer sharing her frustration over a shirt she bought from a popular UK brand. Not only had the price increased by 20% compared to last year, specifically for US buyers, but when the package finally arrived, she was hit with an additional $30 release fee from USPS due to tariffs.
At first, I didn’t really think much of it, but then last week, my friend was shocked to see the price of her favourite pair of sneakers almost double overnight. I then realised how tariffs, often discussed in economic or political terms, are quietly creeping into the choices and wallets of ordinary people.
Understanding tariffs
A tariff is a tax placed on imported goods by a government, which raises their price to encourage consumers to buy domestic products instead. Tariffs are also a source of revenue for the government and regulate foreign trade. The 47th president of the United States, Donald Trump, has imposed massive tariffs on countries all across the globe. He doubled tariffs on India from 25% to 50%, while maintaining steep hikes on other nations such as the European Union (15%), Canada (35%), and Brazil (50%).
Through this article, I want to understand the effects of these tariffs and share that understanding with my peers. Maybe it will encourage us to think differently about our choices, be open to lifestyle changes, and take pride in choosing Indian-made products and services that strengthen our community and nation.
A Quick History of Tariffs
Tariffs have been around for thousands of years. Early civilisations, such as Mesopotamia, and medieval trade cities used them as tolls on goods moving through their markets. Later, countries began using tariffs to encourage their own industries and reduce foreign competition.
During the Industrial Revolution, countries such as Britain, the US, Germany and France raised tariffs to protect their new factories, sparking debates between protectionists and free traders. Decades later, in 1930, the US passed the Smoot-Hawley Tariff Act, increasing taxes on over 20,000 goods. Other nations retaliated with their own tariffs, severely damaging global trade.
However, after World War 2, countries collaborated under the General Agreement on Tariffs and Trade to gradually lower tariffs and promote international commerce. By the late 20th century, globalisation had lowered tariffs among many industries; however, areas such as agriculture and steel continued to have high tariffs.
Trump’s Tariffs
Trump’s new tariffs, which took effect on August 7, 2025, cover billions of dollars in goods ranging from cars and electronics to agricultural products, with some specific measures, such as a 50% tax on goods from India. Although this began on August 27, 2025, these tariffs target imports from over 90 countries, with the steepest rates hitting India, China, Canada, Mexico, Brazil and Switzerland. Global Supply chains are predicted to be disrupted by these tariffs, making production more expensive for key industries such as manufacturing, retail and technology.
Reason for such tariffs
Trump claims that these tariffs are meant to protect US jobs from foreign competition, reduce America’s trade deficit and act as a negotiating weapon in trade talks. They are also designed to punish nations accused of indulging in “unfair trading practices” like intellectual property theft and currency manipulation. By raising import costs, the government hopes to encourage more local production and pressure trading partners towards agreements that are more favourable to the US.
Impact on youth globally and in India
Rising prices for imported gadgets (including gadget parts), fashion brands, and speciality foods could make popular items harder to afford, while tech, beauty products from Asia and even trendy drinks such as boba will become more expensive. Some imported medications, including those used for mental health treatments, might also see price hikes, creating challenges for those who rely on them. Young entrepreneurs, particularly those in the tech and creative industries, could face challenges in collaborating internationally or sourcing affordable materials.
In India, the 50% tariff on exports to the US threatens sectors heavily staffed by youth, including textiles, auto parts, IT services, and pharmaceuticals. For instance, textile exports worth nearly $20 billion annually risk sharp declines, while IT firms face reduced outsourcing projects. This loss of foreign revenue could reduce government finances, leading to decreased investments in education, scholarships, and public universities, and consequently restricting access to quality education for many schoolchildren. Yet, some Indian companies remain resilient: Reliance Industries, TCS, and Infosys continue to thrive by diversifying into Europe, Asia, and Africa, while Amul and Patanjali benefit from rising support for local products. This shift could encourage Indian youth to embrace homegrown brands and spark fresh entrepreneurship.
Looking inward – taking pride in our indigenous/ homegrown brands
These tariffs also encourage us to look for solutions in our local Indian brands. Neeman’s and Thaely offer eco-friendly and stylish Indian made trainers instead of foreign ones. Tech firms like boAt and Noise offer affordable gadgets that compete with rivals such as Samsung and Apple. Ragi and millets are being reintroduced into modern diets as healthy and delicious alternatives. These examples demonstrate that, although the tariffs are costly, they may redirect demand and bolster confidence in India’s ability to innovate for its own youth.
According to the Penn Wharton Business Model, Trump’s tariffs could reduce US GDP by nearly 6% in the long run and lower wages by 5%, leaving American youth with less disposable income for education, housing, or personal goals. For Indian youth, this translates into fewer job opportunities in export-linked sectors, such as textiles, IT, and pharmaceuticals, since US demand directly affects hiring in India. A slowdown in US growth also means reduced outsourcing, investment, and scholarships for Indian students seeking to study abroad.
Looking ahead, while tariffs may be a protective measure for more domestic industries, their ripple effects affect many people of all ages. It is important to stay informed about these developments. However, rather than seeing them as obstacles, we can approach them with a solutions-based mindset. Looking to the future, one way forward is to support indigenous products and homegrown brands, channelling money into local startups, thereby boosting the economy and creating youth employment opportunities in design, marketing, and engineering. The global economy will always present challenges, but with awareness, adaptability, and pride in what our local industries have to offer, our generation has the potential to turn these challenges into opportunities.
Maya Malhotra
Grade 10, Mahindra International School, Pune
About our Writing Program Student
Maya is a 10th-grade student studying at Mahindra International School, Pune. She is passionate about literature, music and creative expression. In her free time, she enjoys reading, listening to music and playing the piano, which helps her balance her academics and creativity.
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References:
What is a tariff and why they matter
Gen Z favourite products trump tariffs price increase
Trump’s sweeping new tariffs take effect against dozens of countries
Trumps tariffs latest round takes affect
What tariffs has Trump announced and why?
Economic effects of President Trump’s tariffs
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