The government is considering options such as reducing tariffs, trade deals, and importing more goods from the US to negate the tariff threat if it becomes a reality.

India's shares fell on Tuesday due to uncertainty over Donald Trump's plans for India after the U.S. President announced trade tariffs on neighbouring countries within hours of taking office.

During his election campaign, Donal Trump had said “tariff” is his “favourite word in the dictionary” and that he would use tariffs to boost domestic manufacturing in the US. In particular, he intends to target countries with whom the US has deep trade relations such as China,