Indian exporters are bracing for a sharp decline in US orders after trade talks collapsed and Washington confirmed steep new tariffs on the South Asian nation’s goods will take effect from Wednesday, escalating tension between the strategic partners.

An additional 25% duty announced by President Donald Trump, confirmed in a notice by the US Department of Homeland Security, takes total tariffs to as much as 50%, among Washington’s highest, in retaliation for New Delhi’s increased buying of Russian oil.

“The government has no hope for any immediate relief or delay in US tariffs,” said an Indian commerce ministry official, seeking anonymity for lack of authorisation to speak to media.

Exporters hit by tariffs would receive financial assistance and be encouraged to diversify to markets such as China, Latin America and the Middle East, the official added.

The commerce ministry did not immediately respond to an email seeking comment on the latest notice.

The new duties will apply from 12:01 a.m. EDT on Wednesday (9:31 a.m. IST), it showed. Exceptions are shipments in transit, humanitarian aid, and items under reciprocal trade programmes. The Indian rupee fell to a three-week closing low of 87.68 against the dollar.

The benchmark equity indexes, NSEI and BSESN closed down 1 per cent each, their biggest daily declines in three months.

Wednesday’s tariff move follows five........

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