Tariffs: 50% US tariffs on Indian products come into force

New Delhi (India), 27 August. (LaPresse/AP) – New US tariffs on Indian products came into effect today. President Donald Trump had initially announced a 25% tariff on Indian products, but then imposed an additional 25% tariff due to India's purchases of Russian oil, bringing the combined US tariffs on the Asian country to 50%. The Indian government estimates that exports worth £48.2 billion will be affected. Labour-intensive sectors such as textiles and leather are likely to be the hardest hit. Indian Prime Minister Narendra Modi has promised that he will not bow to pressure from the US. This is a major challenge for India, as the tariffs threaten more than half of Indian exports to its largest foreign market. The situation therefore highlights the fragility of trade ties between the two allies.