India and the US have held several rounds of negotiations for a trade deal over the past few months, with Delhi even reducing tariffs on goods like Bourbon whiskey and motorcycles to placate the US. But the US runs a $45bn (£33bn) trade deficit with India, which Trump is keen to reduce.

That’s a steeper hit than the 15% to 20% range applied on several regional peers.India’s stock benchmark has lagged most major global peers this year amid concerns over a slowdown in its economy and corporate earnings.

President Donald Trump says the United States and India are still negotiating on trade despite new tariffs slated to begin in a few days.