MUMBAI (Reuters) -About 55% of India's merchandise exports to the United States will be subject to the tariff imposed by President Donald Trump's administration, the Indian government said on Monday.

Several economists have called Trump's tariff jolt India’s next ‘1991 moment' and suggested the government seize this opportunity to unleash the next round of far-reaching domestic economic reforms.

India, which now faces among the highest tariff rates imposed by the US, called the levy "unjustified and unreasonable".

As the president pursues his goals on Russia and trade, America’s relationship with an important partner in Asia could end up as collateral damage.

President Donald Trump says the United States and India are still negotiating on trade despite new tariffs slated to begin in a few days.

According to President Donald Trump’s latest deal, Nvidia and AMD can restart sales of — respectively — their H20 and MI308 chips to China in return for handing 15 per cent of revenues gleaned to the US government.

Tariffs on Indian exports to the United States will surge to 50 percent by late August, as part of an effort by President Trump to pressure Russia into resolving its war in Ukraine.

Trump-era tariffs pressure India’s garment exporters as buyers move orders elsewhere, raising concerns over jobs and trade competitiveness.