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.

When companies realized they needed to diversify away from China, India was the natural choice. Now, U.S. tariffs threaten that.

By putting off the tariff deadline, Trump extended the truce his administration struck with China in May, after a tit-for-tat trade war between the two countries resulted in the U.S. threatening 145 percent tariffs on Chinese goods and China raising its tariff rate on some goods to 125 percent.