Dhaka, Aug. 27 -- India is preparing for a severe blow to its exports as steep U.S. tariffs on Indian goods came into force Wednesday, threatening more than half of the country's shipments to its largest overseas market.

President Donald Trump had initially announced a 25% duty, but earlier this month signed an executive order imposing an additional 25% penalty over India's purchase of Russian oil. The combined 50% tariff now applies to a wide range of Indian products.

According to government estimates, $48.2 billion worth of exports will be affected, with officials warning the new duties could make sales to the U.S. unviable, leading to job losses and slower growth.

Labor-intensive sectors such as textiles, gems and jewelry, leather g...