US imposes 50% tariffs on Indian goods after Russian oil purchases

India faced a sudden trade shock this week after the United States confirmed that steep additional tariffs on Indian goods took effect Wednesday, escalating tensions between the two strategic partners and threatening a large share of India's shipments to its biggest export market. The White House ordered an extra 25 percent duty on top of an earlier 25 percent tariff, bringing total levies to as much as 50 percent, a move Washington says is in retaliation for New Delhi's increased purchases of Russian oil.

The tariffs were applied from 12:01 a.m. EDT on Wednesday, officials said, with limited exceptions for goods in transit, humanitarian aid and reciprocal trade programmes. The measures follow five failed rounds of negotiations for a bilateral trade agreement and come as U.S. officials, including the White House trade adviser and the treasury secretary, have accused India of indirectly funding Russia's war by sharply increasing oil imports. India has not issued a purchase directive and Indian refiners say they will continue buying based on economics.

Estimates of the damage varied. A government estimate cited $48.2 billion of exports at risk, while exporter groups and analysts...