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.

While the shock is real, many observers still believe the situation is negotiable. Past trade skirmishes between India and the US have ended in compromise, and sectoral carve-outs, especially for sectors like pharmaceuticals,

India's chief negotiator Rajesh Agrawal and Brendan Lynch, the Assistant US Trade Representative for South and Central Asia met in Washington for the fifth round of talks, after which Agrawal returned to New Delhi.