U.S. tariff threat draws backlash in India, rattles markets, and casts doubt on strategic ties amid ongoing trade talks.

• Opposition blames Modi government for diplomatic failure, citing a 25% tariff and penalties over Russia, BRICS ties.
• Rupee slumped to 87.74, markets dipped 0.6%, while economists warn of a 40 bps hit to FY26 GDP growth.
• Trump’s tariffs on India exceed rates for Vietnam, Indonesia, and Japan; the trade deal with Pakistan adds further tension.