India faces daunting task after tax shock, experts say

The 25 percent US tariffs likely to be imposed on Indian exports, which is higher than that of many countries in Asia, can wreak havoc on India's economy, analysts said.

US President Donald Trump said on Wednesday that the United States is still negotiating with India on trade. Earlier in the day, amid talks to finalize a trade deal, he announced on his social media platform Truth Social a 25 percent tariff on Indian goods starting from Aug 1, with an additional but unspecified "penalty" for its defense and energy imports from Russia.

"They have one of the highest tariffs in the world now, they're willing to cut it very substantially," Trump told reporters. "We're talking to India now — we'll see what happens… You'll know by the end of this week."