India Deal: Please Don’t Celebrate 600% Tax Hikes on American Businesses

New 18% tariffs on Indian imports are more than seven times higher than the 2.5% average rate American companies paid before Trump's tariff policies

FOR IMMEDIATE RELEASE - 2/2/26

Contact: press@wepaythetariffs.com

WASHINGTON, D.C. – February 2, 2026 – We Pay the Tariffs, a coalition of over 800 small businesses, responded today to the announcement of a U.S.-India trade deal that reduces IEEPA tariffs on Indian goods from 50% to 18%.

"Let's be clear about what's being celebrated here, this is a 600% tax increase on American businesses compared to 2024," said Dan Anthony, Executive Director of We Pay the Tariffs. "Before President Trump's tariff policies, American importers paid an average of about 2.5% on goods from India. This 'deal' locks in a rate six times higher than what we were paying a year ago. That's not relief, it's a permanent tax hike that will be in place for a long time if Congress doesn’t fight back. American businesses will still be on the hook for billions in taxes annually that did not exist in 2024.”

Pre-2025 baseline: U.S. tariffs on Indian imports averaged approximately 2-3% (trade-weighted), according to WTO data and the Congressional Budget Office

Today's "deal": 18% tariff rate with potential additional 25% based on oil deal outcome.

"We are at the point where bad news masquerades as good news. Small businesses don't have the margins to absorb a sixfold increase in import taxes," Anthony said. "These costs get passed on to American consumers or force businesses to cut jobs, reduce inventory, or close their doors. Announcing this as a win while American families pay higher prices is disconnected from the reality on Main Street. We Pay the Tariffs urges policymakers to pursue genuine tariff relief that returns rates to pre-2025 levels, rather than celebrating reductions from artificially inflated peaks.”

Small Business Interviews Available:

We Pay the Tariffs can connect media with small business owners who import from India and can describe firsthand the impact of tariffs on their operations, employees, and customers. Contact press@wepaythetariffs.com to arrange interviews.

About We Pay the Tariffs

We Pay the Tariffs is a grassroots coalition of over 800 small businesses advocating against tariffs imposed starting in 2025. Members include restaurants, manufacturers, retailers, game companies, importers, and other enterprises from every U.S. region. The vast majority of members are micro businesses with 10 or fewer employees. For more information: www.wepaythetariffs.com

MEDIA CONTACT: press@wepaythetariffs.com