India's $86.5 bn in exports to US could be significantly impacted but it is expected to remain a preferred country for manufacturing.

Pakistan, which announced a deal with the US on Thursday, has received a 19% tariff rate, while Bangladesh's rate, which earlier stood at 35%, has been brought down to 20%. Pakistan was earlier hit with a 29% reciprocal tariff in April.

President Donald Trump said on Wednesday the United States is still negotiating with India on trade after announcing earlier in the day the U.S. would impose a 25% tariff on goods imported from the country starting on Friday.