President Trump imposed a 26% tariff on Indian imports, one of the highest on major US trading partners. This follows his criticism of India’s tariffs and their trade imbalance. Despite efforts by India to reduce tariffs and make concessions,

Although that is manageable for Mr Modi in the short term, it comes as the economy is slowing and the stockmarket slumping. A long trade war could undermine his goal of boosting India’s exports to $2trn by 2030 and accelerating annual GDP growth to at least 8%. It could also damage his reputation for cultivating warm ties with Mr Trump.

US President Donald Trump on Wednesday announced a sweeping set of reciprocal tariffs, imposing varying rates on several nations in a bid to curb what he described as the "looting" of America by foreign economies.

US President Donald Trump has announced sweeping new tariffs on all imports, starting with a universal 10% baseline and steeper rates of up to 50% for certain countries. The move, aimed at reducing trade deficits and boosting domestic industry,

India plans to lower import tariffs on electric cars, rejecting requests from local automakers to delay such cuts by four years, as New Delhi prioritises closing a trade deal with the United States, government and industry sources told Reuters.