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New tariffs previously announced by the United States on India have officially gone into effect, resulting in a 50% duty on many Indian exports.

Getting into it: The new tariff rate, which doubles the previous 25% tariff, specifically targets a wide range of Indian goods including textiles, clothing, jewelry, and certain auto and marine exports. The Trump administration implemented this hike in retaliation for India’s continued purchase of discounted Russian oil, which the US argues is indirectly financing Russia’s war in Ukraine.

India exported more than $87 billion in goods to the US in 2024, making the United States its largest export market. The new 50 percent duty is expected to affect roughly $50 billion of those exports, with some saying that this will make India’s exports to the US unviable. Exporter groups estimate the additional duties could lead to a 30% decline in exports to the US. The Indian government has condemned the tariffs as “unfair, unjustified, and unreasonable,” and is preparing financial support packages and export diversification plans to cushion the blow.

The Trump administration had previously indicated that the new pressure could both cut back India’s imports of Russian oil and also open up their agricultural market to the US. Despite this, Prime Minister Modi has said that he would not under any circumstances allow the US to take away business from Indian farmers and other businesses involved in their agricultural industry.

Amid the diplomatic fallout, Prime Minister Narendra Modi has declined four phone calls from President Trump in recent weeks, according to reports by German outlet Frankfurter Allgemeine Zeitung and Japan’s Nikkei Asia.