India is bracing for a sharp blow to its overseas trade as steep U.S. tariffs take effect on a range of Indian products Wednesday — a move that threatens over half of India’s exports to its largest market and highlights the fragile trade ties between the two countries.

President Donald Trump had initially announced a 25% tariff on Indian goods. But earlier this month he signed an executive order imposing an additional 25% tariff due to India’s purchases of Russian oil, bringing the combined tariffs imposed by the United States on its ally to 50%.

The Indian government estimates the tariffs will impact $48.2 billion worth of exports. Officials have warned the new duties could make shipments to the U.S. commercially unviable, triggering job losses and slower economic growth.

India–U.S. trade relations have expanded in recent years but remain vulnerable to disputes over market access and domestic political pressures. India is one of the fastest-growing among major global economies and it may face a slowdown as a result.

Estimates by New Delhi-based think tank, Global Trade Research Initiative, suggest labor-intensive sectors such as textiles, gems and jewelry, leather goods, food and automobiles will be the most impacted.

The U.S. has for now exempted some sectors such as pharmaceuticals and electronic goods from additional tariffs, bringing some relief for India as its exposure in these sectors is significant.

Puran Dawar, a leather footwear exporter in northern India’s Agra city, said the industry would take a substantial hit in the near term unless domestic demand strengthens and other overseas markets buy more Indian goods.

“This is an absolute shock,” said Dawar, whose business with the U.S. has grown in recent years. Dawar’s clients include the major fashion retailer Zara.

Dawar is also the regional chairman of the Council for Leather Exports — an export promotion body. He said the U.S. should understand that the steep tariffs will hurt its own consumers.

AP Video shot by Rishi Lekhii and Ajit Solanki