partners to rivals, India and America's trade war ramps up. Good morning. This is the Marketplace Morning Report and we're live from the BBC World Service. I'm Leanna Byrne. So it's a tough day for India from today. Most of its exports to the United States face a 50% tariff. It's a major shift in relations between the two countries, not so long ago.

They were partners, especially in tech and defence. Washington says the tariffs are, in part,

punishment because India is buying Russian oil. But Anab Wadahan, former Commerce Secretary to India's

government, says that's not fair. Why should only a developing country with a per capita income of $2,500 have to face the crunch of unilateral sanctions?

I don't think it's reasonable to expect India to stop buying oil from Russia and we should not stop buying it.

On the ground, impact is already being felt.

From Tierpur City in the south, the garment hub, supplying global brands like Zara, H&M and Walmart,

to Mumbai's bustling diamond workshops, panic is rippling through India's factories,

as US buyers pause buying.

The BBC's Archina Shukla reports.

What you hear is the whirs and hums of sewing machines.

I'm in a garment factory in the small town of Therupur in southern India.

This town is an export powerhouse.

It makes up for over a third of India's $16 billion dollar garment exports, and for them, US is their

biggest market. So this town matters. But the Trump administration tariffs has had businesses

here worried. At the moment, no, that everything is suck up.

Seva Subramaniam's U.S. clients, some of the big retail chains, have halted orders, fearing a 50% tariff, forcing him to cut production by half.

These products are for the Indian market and the European market.

Even at the current 25% tariff, the U.S. market is slipping away.

So all this is ready for shipments?

Yes, ready for shipments.

Siva walked me over to show piles of finished garments, unsold and gathering dust.

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