The United States has enforced 50% tariffs on Indian exports after the expiry of President Donald Trump’s deadline, bringing a major setback for bilateral trade. The new duties combine an earlier 25% “reciprocal tariff” with an additional 25% penalty linked to India’s continued purchase of Russian oil.

The tariffs, which took effect on Wednesday, cover key export sectors such as textiles, gems and jewelry, leather, machinery, and marine products. Together, these account for more than half of India’s nearly $48 billion annual exports to the U.S.

Exporters fear heavy losses, especially small and medium enterprises that rely on the U.S. market. Industry bodies have urged the government to step in with support measures. In response, New Delhi is reportedly preparing financial aid packages while also exploring alternative markets in China, Latin America, and the Middle East to reduce dependence on the U.S.

Economists warn that the higher duties could reduce India’s GDP growth by 0.8–1% and result in significant job losses across export-dependent industries. The rupee has already slipped to a record low, while Indian stock markets saw sharp declines following the announcement.

The Indian government has called the move “unfair and unjustified.” Prime Minister Narendra Modi said India would continue to safeguard the interests of farmers, small businesses, and exporters, stressing that the country would not compromise its trade and energy policies under pressure.