Donald Trump imposed a 50% tariff on most Indian imports into the US, escalating tensions over India's purchase of discounted Russian oil. This significantly harms the Indian economy and disrupts global supply chains. India defends its trade with Russia, while economists predict a sharp decline in US-India trade. Although some Indian exports remain duty-free, sectors like textiles and gems face major challenges. India's response includes promoting domestic products and strengthening ties with Russia and China, potentially damaging its relationship with the US long-term.

Prepared by Lauren Mitchell and reviewed by editorial team.