A relationship frozen after a deadly clash high in the Himalayas five years ago appears to be thawing under the heat of Washington’s economic pressure.

The levies — imposed, in part, to pressure Russia to end its war on Ukraine by punishing one of its largest oil buyers — are likely to inflame tensions between the U.S. and India.

The textile industry appears particularly vulnerable under these tariffs. With a 50% duty, India's competitive edge in products like cotton bedlinen and jerseys could diminish, benefiting competitors such as Bangladesh and Vietnam. Companies like Gokaldas, Indo Count, and Welspun Living rely heavily on the US market for their revenue.

India's Commerce Ministry did not immediately respond to a request for comment. However, a ministry official, speaking on condition of anonymity, said exporters hit by tariffs would receive financial assistance and be encouraged to diversify to markets such as China, Latin America and the Middle East.

India’s exports worth about USD 45 billion will be hit by a 50 per cent tariff imposed by the United States from August 27, a move that could wipe out New Delhi’s trade surplus with Washington, State Bank of India (SBI) Research said in a report on Tuesday.

As punishment for buying Russian oil, President Trump is doubling the tax on goods imported from India, jeopardizing a relationship decades in the making.

(This was originally published in the India File newsletter, which is issued every Tuesday. <a href=" rel="" title=" up here to get the latest news from India and how it matters to the world.)

Nearly every diamond sold in the world is first cut and polished in Surat. Trump’s escalating tariffs have brought the city to a near-standstill.