A trade deal with the US ahead of the August 1 deadline for reciprocal tariffs was seeming highly unlikely, but the US President Donald Trump’s announcement of a 25 per cent tariff has caught industry unaware.

Despite multiple rounds of discussion between the US and India, President Donald Trump announced a 25% tariff on Wednesday ahead of the August 1 deadline, which, according to analysts, is likely to spark a knee-jerk reaction when the Indian stock market opens for trading.

The Indian stock market awaits a gap-down opening on Thursday, July 30, after US President Donald Trump announced a supersized 25% tariff rate on India for trade.

U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war between the world's two biggest economies that threatens global growth.