Economists at global banks from Morgan Stanley to Nomura Holdings Inc. have identified India and Thailand as among the nations most exposed to risks from President Donald Trump’s vow to impose reciprocal tariffs on trading partners.

India is in talks with the United States for the purchase and co-production of combat vehicles as well as finalising a fighter jet engine deal, people familiar with the matter said. Trump asked Modi in a call last month to buy more U.S.-made security equipment and move "toward a fair trading relationship".

President Trump has issued new threats of a 25% tariff on steel and aluminium imports, targeting countries like India. India's recent reductions in du

With India’s steel industry already facing global competition, higher US tariffs could lead to a slowdown in exports as well as increased production costs, according to the Financial Times.

Economists at Morgan Stanley and Nomura Holdings have pinpointed India and Thailand as the nations most vulnerable to President Trump's proposed reciprocal tariffs, given the significantly higher tariffs they impose on US imports.

The two Asian countries stand out because the tariffs they impose on the US are, on average, far above the rate charged on them by the US, according to a range of estimates from analysts who considered scenarios of like-for-like levies.