The US has doubled tariffs on Indian goods to as much as 50%, escalating trade tensions between the two strategic partners after months of failed negotiations.

Overall trade in goods between India and the U.S. last year amounted to about $129 billion, the Office of the U.S. Trade Representative, or OTR, found. Top imports from India include apparel, chemicals, machinery and agricultural products.

U.S.-India held a virtual 2+2 Intersessional Dialogue on Monday, discussing a wide range of topics and exploring ways to enhance cooperation, as Trump’s 50% tariffs take effect on Wednesday. US-India Discuss Defense,

With the steep 50 per cent American tariffs on Indian goods exports kicking in from Wednesday, policymakers in New Delhi have their work cut out. The problem for them, however, is not knowing how long these tariffs will persist and if a policy intervention can be cogently rolled out without clarity over the timeline of the very disruption that it seeks to address.

India saved billions of dollars by stepping up imports of discounted Russian oil in the wake of the war in Ukraine, but punitive tariffs imposed by the US that came into effect on Wednesday will quickly undo the gains.

Trump's levies threaten to sever India's access to its largest diamond market, which accounts for nearly a third of its $28.5 billion annual shipments of gems and jewelry.

President Trump focuses on the trade in manufactured goods, where India sells more to the U.S. than it buys. But the countries share a balanced trade in services.

Trump imposes 25% tariff on India imports over Russian oil purchases, pushing some duties to 50% as retaliation for New Delhi's discounted crude imports.

Trade negotiations between the U.S. and India are ongoing, although New Delhi has some “red lines” that it will defend, according to India’s foreign minister. “I mean, negotiations are still going on in the sense that nobody said the negotiations are off.