President Donald Trump has imposed a 50% tariff on most Indian exports, linking the measure to New Delhi’s continued purchases of discounted Russian crude. The levy, which takes effect later this month, gives India the highest U.S. tariff rate in Asia and places an estimated $86.5 billion in annual shipments—roughly 70% of India’s exports to America—under threat. Treasury Secretary Scott Bessent said the duties are aimed at curbing funds that "fuel the Kremlin’s war machine" and warned that Washington could raise “secondary” tariffs if Trump’s meeting with Russian President Vladimir Putin in Anchorage on 15 August fails to secure progress toward a Ukraine cease-fire. Bessent also urged European governments to join U.S. sanctions, noting that some EU buyers are importing fuel refined in India from Russian oil. Economists caution that the shock could widen India’s current-account deficit, pressure the rupee and dent foreign direct investment. Think tank ORF estimates a modest 0.1–0.3 percentage-point hit to GDP growth, but sector analysts flag heavier pain for textiles, jewellery, pharmaceuticals and agriculture. CreditSights adds that weaker export earnings could ripple into the banking system. Indian refiners, the world’s largest buyers of seaborne Russian crude, are scrambling for alternatives. State-run BPCL has booked 10 million barrels of U.S. oil, while Rosneft-backed Nayara Energy—hit by recent EU sanctions—has shifted to ship-to-ship transfers and is in talks with the government to keep its 400,000 barrel-a-day Vadinar plant running. Traders say the sudden switch in Indian demand is tightening some spot markets, but prices have yet to spike.