NEW DELHI (AP) — India faces a major challenge as a steep U.S. tariff on Indian products takes effect. The import duties coming into force on Wednesday threaten over half of India’s exports to its largest overseas market. The situation highlights the fragile trade ties between the two allies. President Donald Trump initially announced a 25% tariff on Indian goods, but then imposed an additional 25% tariff due to India’s purchases of Russian oil. That brings the combined U.S. tariffs on India to 50%. The Indian government estimates that $48.2 billion worth of exports will be affected. Labor-intensive sectors like textiles and leather will likely be hit hardest. Prime Minister Narendra Modi has vowed not to yield to U.S. pressure.
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