The tariffs are scheduled to kick in 21 days from the date of the executive order US President Donald Trump on Wednesady announced 25 per more tariffs on India as "punishment" for buying oil from Russia, taking the total tariffs to 50 per cent.

Trump signed an Executive Order imposing additional 25 per cent tariff on Indian imports. According to the order, Trump cited matters of national security, foreign policy concerns, trade laws for the increase, adding that India's imports of Russian oil pose an "unusual and extraordinary threat" to the United States.

While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days.

The additional tariffs obviously means a much higher cost for Indian exports in products like auto parts, textile, and electronics. The steel, chemical and pharma industries will be affected and may face a huge setback.

The trade imbalance between India and the US could widen. There could also be a possible shift or reconsideration in the supply chain. Reacting to the development, the Ministry of External Affairs said that India will take actions to protect its ‘national interest’.

“We have already made clear our position on these issues, including the fact that our exports are based on market factors and done with overall objective of ensuring the energy security of 1.4 billion people of India,” the Ministry said. “It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests,” it added.

Trump signed an executive order imposing the additional tariff less than 14 hours befoe his initial tariffs were to come into effect.