The United States will impose a second 25-percentage-point levy on Indian goods on 27 August, lifting the total tariff rate to 50% on a broad array of products. Washington says the measures respond to New Delhi’s continued purchases of discounted Russian oil. A first tranche of 25% duties has been in place since April, making India one of the hardest-hit targets of the Trump administration’s trade policy. Indian Foreign Minister Subrahmanyam Jaishankar said negotiations with Washington remain active despite the escalation, adding that New Delhi has ‘red lines’ aimed at protecting farmers and small businesses. A planned visit by US trade officials slated for 25-29 August was cancelled, but both capitals have kept communication channels open, according to India’s foreign and finance ministries. Business groups warn that the higher levy will now cover about two-thirds of India’s merchandise exports—valued at roughly $86.5 billion last year—hitting labour-intensive sectors such as gems, textiles, handicrafts and several agricultural products. The Federation of Indian Export Organisations estimates that around 55% of current shipments will face the full surcharge, while pharmaceuticals, mobile phones and petroleum products largely escape the new duties. Economists at Capital Economics calculate that, if the 50% tariff remains in place, it could shave 0.8 percentage point off India’s GDP growth both this year and next, with longer-term risks to the country’s ambition to become a global manufacturing hub. India’s July economic review echoed those concerns, saying secondary and tertiary effects could intensify unless the two sides reach a compromise.