A jar of pickled mango, a popular Indian condiment, is $2.99 at Pioneer Cash & Carry in Artesia. But that price won’t last long.
The grocery store, located in the heart of Artesia’s Little India, must raise prices to cover rising costs as a result of President Trump’s trade policy toward India.
Starting Friday, there will be a 25% tariff on Indian goods. Because the two countries could not reach an agreement by Trump’s deadline, the president issued an executive order Thursday night authorizing tariffs on goods from India and several other countries to begin in seven days.
Several Los Angeles businesses that rely on imported Indian goods told The Times that the steep tariff would force them to raise prices in order to stay in business. Business owners expressed concern about the next few weeks or months’ impact on their bottom lines.
Devraj Keray, the owner of Pioneer Cash & Carry, said some vendors have already informed him that prices will increase by 25% beginning Monday. The company, which operates one of California’s largest Indian grocery stores, will have to raise prices on imported Indian products.
“We’ll have to pass that on to the consumer,” he told me. “There’s not really any way around that.”
The grocery store, which has two locations in Artesia, has been family-owned and operated since 1982. Keray believes customers will spend less, but they will still require basic grocery items.
“People will cut back, so we’ll feel a bit of a pinch,” he predicted. “Doing business is becoming increasingly expensive on a daily basis. It won’t be easy for the smaller guys.”
Artesia’s Little India neighborhood is a cultural hub for the community and one of the largest Indian enclaves in Southern California. Artesia City Councilmember Zeel Ahir described the strip of businesses along Pioneer Boulevard as the “heart and soul” of the area for Indians.
“It gives me a warm and homey feeling knowing that the goods that were available in India for some immigrants are also available here,” said Ahir, who has lived in the area her entire life.
India “is our friend,” Trump said on his Truth Social platform, announcing the tariffs, but its tariffs on American products “are far too high.” Trump announced a 25% tariff on Indian goods on Wednesday, after a universal baseline tariff of 10% on all foreign imports had been in place for months.
The Office of the United States Trade Representative estimates that Indian goods exports to the United States will exceed $87 billion in 2024. Last year’s trade deficit with India totaled $45.7 billion, up more than 5% from 2023.
Pharmaceuticals, jewelry, textiles, spices, and food products are among the most popular imports.
The Trump administration claims that tariffs will “strengthen the international economic position” of the US and protect American workers.
In addition to the 25% tariff on its exports to the United States, India faces an unspecified penalty for purchasing Russian oil.
“I don’t care what India does with Russia,” Trump stated in a Truth Social post on Thursday. “They can take their dead economies down together, for all I care.”
Negotiations between the two countries are still ongoing, but local businesses are still struggling to adapt to the new operating environment.
Beyond Artesia, which is located in southeast Los Angeles County, the city of Los Angeles has several Indian grocery stores, clothing stores, and other businesses that rely on Indian imports.
Dalbir Singh Ghotra, owner of Kavita Grocery in the Palms neighborhood, stated that the tariff would “spell disaster for small businesses like us.”
After running the grocery store for three decades and keeping the doors open during difficult economic times, Ghotra said he’s already seen sales drop recently as customers tightened their belts amid growing economic uncertainty.
Just down the road, owner Sneh Prasad of Bollywood Styles, a clothing and accessory store, said recent sales have dropped to the lowest levels she’s seen in about 18 years.
With the vast majority of her inventory imported from India, Prasad is concerned about the future.
“Businesses have already become harder for mom-and-pop stores like us,” she told me. “If the import prices go up, I do not know how we will survive since sales may fall drastically.”
Many business owners reported that foot traffic and sales have already slowed this summer. Some believe the downturn is due to customers’ fear of potential immigration raids on businesses that primarily serve immigrants.
“Ninety-nine percent of our customer base is Asian, from the Indian subcontinent, and [some] are not sure if they would even be able to live here,” said Krutika Pranav, manager of Highglow Jewelers in Artesia. “All of this heightens the fear, and we’ve seen a significant slowdown as a result. Tariffs will make things even worse.”
Prashant “Peter” Patel, president of the Indian American Business Association and Chamber of Commerce, which is based in Florida but has ties to small businesses across the country, stated that Indian business leaders are generally anxious. He remains hopeful that the two countries’ leaders will reach an agreement soon.
“This is the time for diplomacy and pragmatism,” he told reporters. “Our goal is not to politicize this issue, but to represent the voice of those working hard every day to grow businesses that serve, employ and uplift communities.”
Others weren’t so optimistic.
“It’s like a chess game, to see who makes the first move,” said Keray, the owner of Pioneer Cash & Carry. “It’s just a matter of how far it goes before the consumer is the one that becomes a victim of all this.”
