President Donald Trump’s decision to double tariffs on most goods from India to as much as 50% took effect at 12:01 a.m. ET on 27 August, penalising New Delhi for continuing to buy discounted Russian crude. The increase, announced earlier this month, lifts duties that had stood at 25% since early August and marks one of the steepest levies imposed by the United States on any trading partner. India’s Commerce Ministry estimates the higher duties threaten about $48.2 billion of annual exports to its largest market, while Barclays calculates that roughly 70% of shipments could ultimately be affected. Labour-intensive industries such as textiles, gems and jewellery, leather goods and seafood face the brunt of the measure; pharmaceuticals and most electronics remain exempt for now. Analysts say the new tariff regime could erase the $17 billion India saved this year by purchasing Russian oil and cost exporters up to $37 billion in lost sales during the current fiscal period. Trade groups warn of factory closures and job losses as margins shrink, and Indian benchmark equity indexes fell to a three-month low in the session preceding the levy’s launch. Prime Minister Narendra Modi has vowed not to yield to U.S. pressure, urging citizens to buy domestically made products while officials draft tax and credit incentives to cushion exporters. Five rounds of bilateral trade negotiations have failed to produce an agreement, and a planned sixth round was cancelled this week. The escalation adds strain to relations between the world’s two largest democracies even as Washington courts New Delhi as a strategic counterweight to China.