Core Points - The U.S. has imposed a 50% tariff on nearly all goods from India, marking the most severe tariff against a country with which it has strong ties, primarily as a punitive measure for India's purchase of Russian oil [2][4] - This tariff is expected to severely impact numerous Indian exporters, affecting millions of jobs and potentially damaging the expanding economic relationship between the U.S. and India [2][5] - India's previous confidence in its importance to the U.S. has diminished, as it now faces the same tariff level as Brazil, which is led by a president opposed to Trump [2][5] Trade Relations - The tariff increase follows a series of announcements from Trump, starting with a 25% tariff on Indian exports, particularly affecting pharmaceuticals and precious stones [3] - The U.S. has been using tariffs as a tool to achieve broader strategic goals, with recent tariffs aimed at making it harder for Russia to profit from its oil economy [4][5] Economic Impact - The new tariffs are likely to slow India's economic growth, although it is still expected to remain one of the fastest-growing major economies [5][6] - Financial experts predict a decline in India's growth rate by less than 1 percentage point, from approximately 6.5% to a slightly lower level [5] Political Context - Indian Prime Minister Modi faces domestic political challenges as he rallies the public against U.S. pressures while emphasizing the protection of small businesses and farmers [5] - Modi's administration had hoped to mitigate U.S. concerns by increasing energy and defense imports from the U.S., but these efforts have not yielded significant results [4][5]