U.S.-India trade hit $131.8 billion in 2024-25, with $86.5 billion in Indian exports
The U.S. recently added a 25 percent penalty to tariffs on Indian goods, raising the total to 50 percent, which India called “unfair, unjustified and unreasonable.” Pictured Congress activists burn an effigy of US President Donald Trump and Indian Prime Minister Narendra Modi to protest the tariffs.
Photo by Debajyoti Chakraborty/Middle East Images via AFP
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
President Trump has levied a total of 50 percent tariffs on India.
Reciprocal tariffs began Aug. 7, with penalties from Aug. 27.
New tariffs will hit Indian leather, chemicals, footwear, gems and textiles sectors hard.
U.S. PRESIDENT DONALD Trump’s tariffs against India have reached 50 percent as trade talks faltered. India called the additional tariffs “unfair, unjustified and unreasonable.”
Trump announced a 25 percent penalty on goods imported from India on Wednesday, in addition to the 25 percent reciprocal tariff announced on July 31, bringing the total baseline tariff to 50 percent.
The reciprocal tariffs took effect Aug. 7, with the penalty applying from Aug. 27, meaning goods in transit on that date but entering the U.S. before Sept. 17 will face the earlier rate. India said it was being punished for buying Russian oil at discounted prices, something other nations have also done, though it did not name them, according to Business Standard.
However, Trump said no further trade negotiations would take place unless the tariff issue is resolved, Times of India reported. Asked about talks with India, he said, “No, not until we get it resolved.”
“For us, the interests of farmers are our top priority,” Prime Minister Narendra Modi said, according to Reuters. “India will never compromise on the interests of its farmers, dairy farmers and fishermen. I know that I will personally have to pay a heavy price. But I am ready for it,” he said without naming Trump or the U.S.
An early White House visit by Modi led to months of negotiations. By July, Indian officials believed they had an agreement and that Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer were waiting for Trump’s approval.
Impacted sectors
The U.S. is India’s largest export partner. The previous tariff rate on Indian goods was about 3 percent. The increase to 50 percent will make Indian imports to the U.S. significantly more expensive. In the last fiscal year, bilateral trade totaled $131.8 billion, with $86.5 billion in exports from India and $45.3 billion in imports, according to media reports.
With the new tariffs, sectors such as leather, chemicals, footwear, gems and jewellery, textiles and shrimp are expected to be severely affected, PTI reported, citing industry experts. Competitors such as Vietnam, Indonesia, Malaysia and the Philippines face reciprocal tariffs of less than 20 percent, likely reducing U.S. demand for Indian goods. Exporters in textiles, chemicals and gems and jewellery have said they expect a 50 to 70 percent drop in exports to the U.S.
“The U.S. tariff announcement of Aug. 6 is a huge setback for India’s textile and apparel exporters as it has further complicated the challenging situation we were already grappling with and will significantly weaken our ability to compete effectively vis-à-vis many other countries for a larger share of the U.S. market,” it said.
Tariffs and hotel operations
“Tariffs create uncertainty and industries such as travel and hospitality rely on confidence,” according to OysterLink, a U.S.-based job platform for restaurants and hospitality. “When businesses and consumers are unsure about the economy, they often delay travel and cut spending, reducing occupancy, revenue and profitability.”
According to U.S. National Travel and Tourism Office data cited by Reuters, nearly 1.9 million Indians visited the U.S. in the first 10 months of 2024, up about 48 percent from 2019, driven by increases in both business and leisure travel. NTTO figures show a 50 percent rise in business visas and a 43.5 percent rise in leisure visas in 2024. The agency lists India among the top overseas source markets, with 620,000 overseas air arrivals in the third quarter of 2024.
“Higher import prices have also raised hotel operating costs, according to media reports. “Even after some tariffs were reduced or modified after Trump’s first term, the price of imported goods remained above pre-tariff levels. U.S. hotels rely on imports for furniture, linens, electronics and kitchen supplies, and tariffs on products from countries such as China have increased these costs.”
"Trade tension and tariffs have impacted the transaction landscape, as many case goods and FF&E were previously sourced from overseas," said Suraj Bhakta, CEO and chief legal officer of NewGen Advisory, a national brokerage firm. "The market is seeing a sharp rise in PIP costs. While developers can explore other countries with lower tariffs, the reality is it’s affecting projects already underway."
With global supply chains in flux, Bhakta said the uncertainty is being priced into valuations.
Hotel supply growth is projected to stay below 1 percent over the next three years due to high financing and construction costs, CBRE reported. Additional tariffs, labor shortages, or limited Federal Reserve rate cuts could further constrain supply, increasing pricing power and replacement costs, while U.S. RevPAR is expected to rise in 2025, driven by urban markets and growth in group, business and international travel.
“Tariffs are having a huge positive impact on the Stock Market. Almost every day, new records are set. In addition, hundreds of billions of dollars are pouring into our country’s coffers,” he wrote.
He warned that a late court ruling against his use of the IEEPA by what he called a “Radical Left Court” would devastate the economy. “It would be 1929 all over again, a GREAT DEPRESSION!” he said, adding the decision should have been made “LONG AGO, at the beginning of the case” to avoid risking the nation’s economic momentum.
Trump said there would be “no way America could recover from such a judicial tragedy,” but expressed confidence in the U.S. court system. He concluded by saying the country “deserves SUCCESS AND GREATNESS, NOT TURMOIL, FAILURE, AND DISGRACE.”
‘Two things President Trump loves: tariffs and Nobel Prize’
Former diplomat Rakesh Sood suggested there may be another motive after the U.S. announced the 50 percent tariff on Indian goods.
“There are two things that President Trump loves – One is tariffs and the second is the Nobel Peace Prize, so he will do anything to get to the bottom of these two,” Sood said to ANI. “He has repeatedly said how he stopped the war between India and Pakistan and prevented a nuclear war. We’ve not given him comfort on the Nobel, so I guess we are facing the tariffs. We’ll see how we deal with it.”
If protectionist policies continue, India may seek to strengthen trade ties with ASEAN, the European Union and Latin America, potentially reducing reliance on the U.S., according to The Diplomat.
However, the Indian government has not yet issued an official response.
The Diplomat said that India has taken reciprocal action in similar disputes in the past: “In 2019, after the U.S. removed India from the Generalized System of Preferences, India increased tariffs on 28 American products, including almonds, apples and medical equipment.”
“India must now decide whether to negotiate to ease the tariffs or impose countermeasures. The outcome could shape U.S.-India trade relations in the coming months,” the website reported.
Trump administration plans H-1B and green card reforms.
Proposal limits visa duration for students and media personnel.
Indian B1/B2 applicants face long interview waits.
THE TRUMP ADMINISTRATION plans to replace the H-1B lottery with a wage-based system favoring higher-paid applicants. It also proposed limiting visa duration for foreign students and media personnel.
Hotel associations, including AAHOA and the American Hotel & Lodging Association, have been pushing to replace the 66,000 annual H-2B visa cap with a needs-based system.
“We’re going to change the green card,” Secretary of Commerce Howard Lutnick told Fox News, according to Economic Times. “We give green cards. The average American makes $75,000 a year, while the average green card recipient makes $66,000. Why are we doing that? It’s like picking the bottom tier.”
He also called the system a scam. According to the U.S. Social Security Administration, the average U.S. salary for 2023, its latest National Average Wage Index, was $66,621.80.
The U.S. Office of Information and Regulatory Affairs approved a draft rule earlier this month, according to Bloomberg Law. The H-1B program is capped at 65,000 visas annually, with an additional 20,000 reserved for U.S. advanced degree holders, according to the U.S. Citizenship and Immigration Services. A lottery each spring selects registrations. The Department of Labor certifies applications, DHS adjudicates petitions, the State Department issues visas and the Department of Justice enforces compliance. H-2A visas for temporary farm work have no cap, while H-2B visas are capped at 66,000.
During the first Trump administration, the Department of Homeland Security proposed replacing the H-1B lottery with a wage-based system that would rank petitions in four wage tiers, giving priority to higher-paid jobs, under the “Buy American, Hire American” policy, according to the Federal Register.
The Biden administration withdrew the rule in 2021 after more than 1,000 public comments warned it would reduce the pool of eligible workers, and federal courts blocked related efforts to raise wage minimums and narrow the definition of qualifying jobs, according to Bloomberg Law. The latest approval, it reported, signals the government may again pursue changes to the H-1B allocation process.
In January, Trump joined Tesla founder Elon Musk in supporting the H-1B program despite opposition from parts of his base. His companies have often used H-2B visas for roles such as gardeners and housekeepers and H-2A visas for farm workers, which allow stays of up to 10 months.
Limiting visa duration
In addition to H-1B reforms, the Trump administration proposed limiting visa duration for foreign students and media personnel, PTI reported. The rule would replace the current “duration of status” policy, which allows F-visa holders to stay in the U.S. indefinitely, with fixed admission periods of up to four years or the length of their program.
For I-visa holders, used by foreign media, the rule would set an initial admission period of up to 240 days, with extensions of the same length not exceeding the assignment period. All extensions would require approval from U.S. Citizenship and Immigration Services and review by DHS. The policy was first proposed in 2020 but withdrawn by the Biden administration in 2021.
Long wait
Indian applicants for U.S. B1/B2 visas continue to face long interview waits, the Economic Times reported, citing the State Department’s Global Visa Wait Times update. In Mumbai and Hyderabad, the average wait is about three months; in New Delhi, four and a half months; in Kolkata, six months and in Chennai, eight and a half months.
State Department data also tracks next available appointments, showing earliest booking dates of about five months in Chennai and Hyderabad, five and a half months in Mumbai and New Delhi and six months in Kolkata.
Visa demand from India has increased in recent years, driven by business travel, tourism and education-related visits. The U.S. has expanded interview capacity since the pandemic backlog, but demand still exceeds available slots at Indian consulates.
Trump’s 50 percent tariff on Indian goods took effect Wednesday, as Prime Minister Narendra Modi urged citizens to follow the “Vocal for Local” policy and Swadeshi mantra in his Aug. 15 Independence Day address.
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Researchers say hiring people with intellectual disabilities can help hotels address labor shortages.
Job coaches, tailored training, and inclusive communication.
The hotel industry still faces a gap of around 200,000 workers post-pandemic.
HIRING INDIVIDUALS WITH intellectual and developmental disabilities could help the hotel industry address ongoing labor shortages and high turnover, according to new research. Employers must also offer support systems like job coaches, clear communication practices and thoughtfully designed roles.
A new report from Penn State School of Hospitality Management researchers suggests that hiring individuals with intellectual disabilities could help promote workplace diversity, improved loyalty and reduced turnover. Designing roles to include autonomy, social support and meaningful work are factors helping employees succeed.
“Hiring someone with an intellectual disability is a great first step but supporting them well when they are on the team is just as important,” said Phillip Jolly, one of the report’s coauthors. “When organizations put thought into these things, it is not just the employee with a disability who benefits — the whole team gets stronger.”
The research comes at a time when the hotel industry is facing a workforce gap. Although staffing has improved since the pandemic, U.S. hotels remain short by roughly 200,000 workers, according to the American Hotel & Lodging Association. In June, government data showed that U.S. hotels added 700 jobs to their payrolls, but the nationwide workforce shortage continues to make it difficult for hotels to fill open positions, according to AHLA.
External factors like increased deportations have also contributed to labor challenges, industry experts noted at last month’s NYU International Hospitality Investment Forum.
The Penn State report encourages hotel operators to tap into government incentives and intentionally foster workplace inclusion—not only to expand hiring pools but to improve team dynamics and long-term retention.
“Community partners can help provide support to individuals with intellectual disabilities, so they do not have to find jobs alone,” said Michael Tews, another report coauthor. “These community partners can provide job coaches and resources that help individuals in their new jobs. Effective training and development are crucial to ensuring individuals with intellectual disabilities thrive in their roles.”
Job coaches can provide personalized support, the report said, including assisting with on-the-job training and aiding communication between the employee and employer. Creating a supportive workplace also help intellectually disabled employee integrate, the report said, but doing that takes intentional effort.
“While there are training programs and orientation processes that can be developed and are important, the real key is to know the individual and customize a work experience for them to allow them to thrive,” said Mike Schugt, founder of INNclusivity, a not-for-profit organization that connects intellectually disabled individuals with employers. “It is all about being open to hiring individuals with intellectual disabilities. Everyone comes to the table with certain abilities, and hotels can bend further and help this audience receive meaningful employment.”
More than 140,000 in L.A. urged a June 2026 vote on the wage ordinance to protect jobs.
L.A. tourism already pays among the highest wages; the ordinance could cut nearly 15,000 jobs.
“Los Angeles residents have spoken—they want a say on this wage ordinance,” said Rosanna Maietta, president and CEO of the American Hotel & Lodging Association.
THE L.A. ALLIANCE for Tourism, Jobs and Progress submitted more than 140,000 signatures opposing the Los Angeles tourism wage ordinance, triggering a June 2026 repeal vote backed by airlines, hotels and concession businesses. Meanwhile, a poll from the Center for Union Facts shows some L.A. voters, including union households, believe the $30 minimum wage for hotel and airport workers will lead to job losses and higher costs.
The wage hike, approved by the L.A. City Council in May, faces a referendum challenge, while UNITE HERE Local 11 fights to defend it. The Alliance, a coalition of local hospitality and tourism groups, is asking officials to ensure a full and timely count of all signatures.
“The Olympic Wage ordinance threatens the existence of small businesses like ours," said Gregory Plummer, Alliance member and CEO and managing partner of Concord Collective. "This isn't just a challenge for employers—it's a risk to the jobs of the workers this ordinance is meant to help.”
The Los Angeles tourism industry already pays among the highest wages in the country and economic analyses estimate the ordinance could result in nearly 15,000 job losses, the Alliance said in a statement. Combined with reduced travel demand, the ordinance puts the tourism sector at risk.
Mark Beccaria, partner at Hotel Angeleno in West Los Angeles, said hotels support both tourism and local workers and their families.
“These new regulations will force many of us to fight to keep our businesses alive, putting thousands of jobs and livelihoods in jeopardy,” he said. “My hotel is a family-owned business. We have been an economic driver for the community. Our hope is to keep our doors open and survive this challenge for the next generation.”
Los Angeles residents want a chance to weigh in on the wage ordinance, said Rosanna Maietta, president and CEO of the American Hotel & Lodging Association.
“The travel and hospitality industry in Los Angeles is still recovering after being decimated by challenges and emergencies,” Maietta said. “We call on the county to respect the democratic process and swiftly and transparently count our signatures and certify the referendum.”
Poll: Job losses loom
A poll by the Center for Union Facts, conducted June 17 to 22 among 507 registered voters in Los Angeles County, found that 54 percent believe the $30 minimum wage will lead to job losses in the hotel industry, including 55 percent of voters in union households. In total, 91 percent said the increase would raise lodging costs for consumers. Respondents also said the policy could affect the city's ability to attract tourism during the 2028 Olympic and Paralympic Games.
“Despite repeated efforts, the city ignored the voices of small businesses who shared, again and again, their struggles to survive in a post-pandemic economy,” said Maria Salinas, president and CEO of the Los Angeles Chamber of Commerce. “I join small businesses united in protecting jobs and the tourism economy that supports more than half a million jobs throughout the city.”
Alec Mesropian, advocacy manager for BizFed, said thousands of Angelenos have warned the wage hike will force small businesses to close, cost up to 15,000 jobs and cut $169 million in tax revenue—yet those concerns have been ignored.
“We’re not against fair pay, but pushing a nearly 60 percent increase without a sustainable plan puts livelihoods, businesses and L.A.’s tourism economy at risk,” he said. “That’s why we’re standing up for workers, employers and the guests who depend on a stable tourism industry.”
“Angelenos deserve a say on policies that could jeopardize jobs, the economy and the city’s ability to deliver services,” said Nella McOsker, president and CEO of the Central City Association. “Amid a budget crisis and declining hotel and sales tax collections, now is not the time to weaken revenue sources or an industry that employs tens of thousands.”
“The tourism wage is economic self-destruction—closing businesses, killing 15,000 jobs and cutting $169 million in tax revenue at a time when the city is struggling to keep streetlights on,” said Stuart Waldman, president of the Valley Industry & Commerce Association. “If the city wants to cause a financial meltdown, the least it can do is let taxpayers vote.”
In May, the L.A. City Council approved a wage ordinance requiring hotels with more than 60 rooms and LAX businesses to pay $30 an hour by 2028, despite concerns over declining international travel. AHLA urged the council to veto the measure, warning it could affect the city’s tourism.
Hyatt cut about 30 percent of guest services and support staff in a recent overhaul.
A spokesperson said the changes reflect “the evolving nature of guest inquiries and shifting business needs.”
Care centers in Marion and Omaha remain operational, including Loyalty, Social, Customer Care, Chat and My Hyatt Concierge teams.
HYATT HOTELS CORP. recently reorganized its Americas Global Care Center operations, cutting about 30 percent of staff across guest services and support teams, the company said in a statement. It did not disclose the total number of employees affected or any plans for additional reductions.
View From The Wing, a travel blog run by Gary Leff, earlier reported that about 300 U.S.-based employees were let go as some operations shifted to El Salvador, where outsourced agents reportedly earn about $400 a month.
Hyatt did not comment further on the layoffs or whether severance, job placement assistance or benefits continuation were offered.
“Decisions and conversations with impacted colleagues were handled with respect and care,” a spokesperson said.
Hyatt dismissed 18 managers and most of the U.S. chat team, leaving about 36 chat agents, View From The Wing reported. Employees were given 24 hours’ notice. All remaining U.S.-based agents now work remotely, as physical call centers have closed.
Former Hyatt employees shared layoff experiences on Reddit, TikTok, and Leff’s blog.
“No more U.S. phone agents,” a person claiming to be a laid-off employee wrote on Reddit. “So today, Hyatt finished what they started six months ago and terminated the rest of their U.S. call team. Enjoy the customer service, y’all!”
Another Reddit user said they were laid off over Zoom.
On TikTok, a former Hyatt employee posted a video on June 18 showing themselves being laid off, including a recording of an alleged group video call.
“We have made the very difficult decision to reduce the number of guest services and support [staff],” a voice is heard saying in the video, according to the UK’s Daily Mail.
A commenter on View From The Wing identifying as a former staffer said they received 60 days of paid leave after the layoff.
The Hyatt spokesperson reiterated that the changes reflect “the evolving nature of guest inquiries and shifting business needs.” The spokesperson said global care centers in Marion, Illinois, and Omaha, Nebraska, continue to operate, including Loyalty, Social, Customer Care, and Chat teams, as well as My Hyatt Concierge contacts, who were not affected by the staffing changes.
“We remain committed to delivering elevated levels of care to all of our guests and World of Hyatt members,” the spokesperson said.
In November, Marriott International reportedly laid off more than 800 corporate employees in a move estimated to save $80 million to $90 million annually. Marriott CEO Anthony Capuano
told CNBC it was not a “traditional cost-cutting measure” but aimed to shift decision-making from the U.S. to other regions.
As of March 2025, Hyatt Hotels Corp., founded in 1957 by the Pritzker family and led by president and CEO Mark Hoplamazian, operated more than 1,450 hotels and all-inclusive properties in 79 countries across six continents. At the end of 2024, it had a record pipeline of about 138,000 rooms.
In June, Hoplamazian received the Cornell Hospitality Icon of the Industry Award for his 18 years of leadership. The company also announced it is renewing its RiseHY commitment to hire 5,000 additional opportunity youth by the end of 2028.
ICE Reverses Decision to Pause Raids on Key Industries
U.S. IMMIGRATION OFFICIALS have reversed enforcement limits at hotels, farms, restaurants and food processing plants days after issuing them, following conflicting statements by President Donald Trump, according to Reuters. ICE leadership told field office heads on Monday it would withdraw last week's directive that paused raids on those businesses.
ICE officials were told a daily quota of 3,000 arrests—10 times the average last year under former President Joe Biden—would remain in effect, two former officials said in the report. ICE field office heads raised concerns they could not meet the quota without raids at the previously exempted businesses, Reuters reported, citing a source.
Some ICE officials left the call uncertain, and it appeared they would still need to proceed cautiously with raids at the previously exempted businesses, the former officials said.
U.S. Department of Homeland Security spokesperson Tricia McLaughlin said ICE would continue making arrests at worksites but did not respond to questions about the new guidance. "There will be no safe spaces for industries who harbor violent criminals or purposely try to undermine ICE’s efforts," she said in a statement Tuesday.
Trump took office in January aiming to deport large numbers of immigrants in the U.S. illegally. ICE doubled the pace of arrests under Trump compared with last year but remains below the level needed to deport millions.
Top White House aide Stephen Miller ordered ICE in late May to increase arrests to 3,000 per day, leading to raids that targeted some businesses.
Trump said in a Truth Social post on Thursday that farms and hotel businesses had been affected by the increased enforcement but also claimed, without evidence, that criminals were trying to fill those jobs. ICE issued guidance that day pausing most immigration enforcement at agricultural, hospitality and food processing businesses.