“This shows the danger of having tariffs that are under the unilateral control of one man,” Setser said.

The Indian rupee is likely to open marginally higher on Thursday, supported by the uptick in Asian peers and muted reaction to U.S. President Donald Trump’s latest tariff announcements.

In the letters, which were posted on Truth Social, Trump warned countries that they would face even higher tariffs if they retaliated by increasing their own import taxes.