NEW YORK, Aug 8 (TIWN): Tension escalated between India and US further as Trump has imposed 50% tariffs on Indian goods, few days after imposing 25% tariffs. This is the historical high tariff that has been imposed by US ever on India.

Key Points Of the New Tariffs Rules 

Total Tariff Rate: 50% on Indian imports, comprising a new 25% tariff and existing duties.
    Effective Date: August 27, 2025, 21 days after the executive order
    Exemptions: Shipments in transit before September 17, 2025, are exempt

Reasoning Behind Tariffs:
    India's Russian Oil Purchases: The US views India's continued oil imports from Russia as a threat to national security and foreign relations.
    Trade Tensions: The tariffs are part of ongoing trade disputes between the US and India, with the US seeking to curb India's trade with Russia.

Potential Impact:
    Indian Exports: $8 billion worth of Indian exports, including gems, textiles, and chemicals, are at risk due to the tariffs
    Economic Consequences: The tariffs may lead to a weaker rupee, higher currency volatility, and potential job losses in affected sectors.

Trump earlier said he would follow "tit for tat' policy for all countries that want to continue trade with the U.S.