When President Trump announced his tariff plan earlier this year, critics warned it could have an adverse effect in many areas. Now, one New Jersey community says the Trump trade war is hurting their businesses and people.
Businesses along Oak Tree Road are facing strain after the Trump administration doubled tariffs on Indian imports to 50 percent last month.
Edison and Woodbridge’s “Little India” is home to over 200 shops, restaurants, and more—each one relying heavily on imported goods. Some are now saying that the costs have become unsustainable.
Indian food staples like basmati rice have risen dramatically over the past month. Raj Patel of Patel Brothers Grocery Stores told The Wall Street Journal that a 40-pound bag of rice used to cost them $50 to buy, but has since risen to $60 a bag. This has forced Patel to raise the shelf price to $69.99 from $59.99.
The increases have been smaller for other products. In many cases, Patel has opted to absorb the expense rather than raise the price. The store is selling some items at a loss.
It’s not just food that is affected. Jewelry stores are reporting record-high gold prices as a result of the 50 percent tariff.
Local officials are working to lower costs where they are able. Edison Mayor Sam Joshi has pledged to strengthen ties with India through trade missions alongside Governor Phil Murphy, who is visiting India this week. Murphy is seeking opportunities to strengthen the relationship between New Jersey and India in technology, biotech, and manufacturing. However, federal tariffs remain out of their control.
The Indian Business Association warns that smaller businesses may not survive if tariffs persist at this level. For families within these communities, tariffs are proving to be financially oppressive.
Peter Candia is the Food + Drink Editor at New Jersey Digest. A graduate of The Culinary Institute of America, Peter found a passion for writing midway through school and never looked back. He is a former line cook, server and bartender at top-rated restaurants in the tri-state area. In addition to food, Peter enjoys politics, music, sports and anything New Jersey.
