• Trump imposes a 50% tariff on Indian goods, doubling previous tariffs aimed at penalizing Russian oil purchases.
• Indian Prime Minister Modi asserts no compromise on farmers' welfare despite economic pressures.
• India's response includes reviewing US arms purchases and continuing discussions for a bilateral trade agreement.
• Political analysts warn that tariffs could jeopardize India's economic growth and diplomatic relations with the US.
• Economic forecasts predict a GDP slowdown for India if tariffs remain in place.

President Donald Trump has significantly escalated economic tensions with India by imposing a 50% tariff on Indian goods, a move seen as punishment for New Delhi's continued purchases of Russian oil. The new tariffs come on top of an existing 25% duty announced earlier, marking one of the steepest rates applied to any trading partner and triggering significant backlash from Indian authorities, who have called the actions "unfair, unjustified, and unreasonable," according to BBC and Al Jazeera.

In responses to the tariffs, Indian Prime Minister Narendra Modi declared a firm commitment to protecting the country's farmers and agricultural sectors, indicating he is "ready" to pay the personal price for standing firm against US demands, as noted by India Times and Dawn.

Economists estimate that should these tariffs remain in effect, Indian GDP might slow by as much as 0.8%, adding further complications to India's economic landscape. Investment firms like Morgan Stanley and Moody's have highlighted the potential for adverse economic impacts if India opts to continue oil imports from Russia amidst high tariffs.

Amid this backdrop, Modi's administration indicated that plans to procure US military equipment, including significant weapon systems, have been placed on hold. This decision came alongside the cancelled trip of Defence Minister Rajnath Singh to Washington for arms procurement discussions, a notable shift as it reflects growing discontent with US policies, according to Al Jazeera and Dawn.

Former National Security Advisor John Bolton has criticized the tariff approach, describing it as a detrimental misstep in US foreign policy that jeopardizes long-standing relationships, including the critical India-US partnership, as reported by India Times.