The U.S. slapped a 26% reciprocal tariff on India in a setback to the South Asian country's expectation of getting relief from President Donald Trump's global trade policy that has unnerved world markets for weeks.

Trump's trade war has subjected India to a 26% tariff on exports to the US, prompting concerns over trade relations between India and its largest export destination. .Ongoing negotiations for an India-US bilateral trade agreement have now become more crucial for mitigating the impact of the tariffs.

While mentioning India, Trump recalled his friendship with Prime Minister Narendra Modi and his Washington visit last month. However, he termed New Delhi as "very, very tough."