The US tariffs on Indian goods are currently at 25 percent, but will be increased on August 27 to 50 percent. According to Trump, the increase is a penalty for India buying oil from Russia.
"The tariffs are a setback for Indian exports. Absorbing this sudden cost increase is simply not feasible", warns SC Ralhan, president of the Indian export federation, in a statement.
India's exports to the US account for around 20 percent of the total exports and correspond to a value of around 80 billion dollars, or 773 billion kronor.
India has been reluctant to open its important agricultural sector to American imports. In a speech on Thursday, Prime Minister Narendra Modi expressed support for India's farmers and said that the country "will never compromise on its farmers' interests”.
Opposition leader Rahul Gandhi has called the tariffs "economic blackmail" and said they aim to "bully India into an unfair trade agreement".
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