India faces potential economic slowdown despite recent strong growth, with concerns arising from weak industrial production, declining auto sales, and

On July 7, Trump announced 25% tariffs on imports from Japan and South Korea, effective August 1. He also announced separate rates for a number of other countries. On Tuesday, he said letters would be going out soon to dozens of smaller countries notifying them their goods would face a tariff rate of over 10%.

Preferential access could mean lower duties for Indian goods compared to those from countries like Vietnam. For instance, if Vietnamese goods face a 20% US tariff, Indian exports may be taxed less under the emerging arrangement.