India secured a higher investment grade rating from S&P Global Ratings, which said the economy’s growth prospects won’t be derailed by President Donald Trump administration’s 50% tariff shock to the country.

Former National Security Adviser John Bolton said Wednesday that President Trump’s tariffs may push India further away from the U.S. and into deeper alliances with Russia and China. The president previously threatened to impose a 25 percent tariff on India for purchasing oil from the Kremlin absent of similar punishments for China,

But experts say India's refusal to reduce duties on agriculture and dairy products has been a major thorn in the negotiations. Trump's new 50% tariff rate on India is set to come into effect on 27 August, which some experts have said is akin to an embargo on trade between the two countries.