The United States has launched a sharp new tariff offensive against India, imposing an additional 25 percent duty on a wide range of exports bringing total levies to 50 percent. The move, a retaliation against New Delhi’s continued purchases of discounted Russian oil, places India among the hardest-hit economies in Washington’s escalating trade battles, surpassing even China.

The surprise escalation threatens sectors that employ millions, including textiles, gems, jewelry, shrimp, and carpets, while pharmaceuticals and electronics face new sector-specific levies. Standard Chartered estimates the measures could shave a full percentage point off India’s GDP growth, deepening vulnerabilities in an already fragile global economy.

India has condemned the tariffs as “unjustified and unreasonable,” vowing to resist economic coercion. With Prime Minister Narendra Modi preparing for a rare summit with Russia and China, analysts warn the dispute could accelerate a dramatic shift in global alliances.