US President Donald Trump's 50% tariffs on India, effective August 27, have put Delhi in a difficult position. India has responded with geopolitical signaling rather than direct retaliation, as the tariffs threaten significant economic repercussions.

• Prolonged 50% tariffs could reduce India's GDP by as much as 0.8%.
• India's exports to the US could drop by up to $35 billion (£26.1 billion) this financial year, risking hundreds of thousands of jobs in key industries.
• Experts advise against retaliation, citing India's greater economic dependence on the US, with India's goods exports to the US ($86 billion) being nearly three times higher than US goods exports to India.
• India is exploring options like diversifying export markets and strengthening trade ties with countries like Mexico, Canada, and those in Europe and Latin America, while accelerating other trade pacts like the India-EU free trade deal.
• US Commerce Secretary Howard Lutnick has warned of potential changes to H1B non-immigrant visas, 70% of which are used by Indians, indicating the impact of tense geopolitical ties extends beyond trade.