Tensions between India and the US have ratcheted up at a steady pace in the last few weeks after India imposed tit-for-tat tariffs on 28 US products after the US decision to withdraw preferential status granted to Indian exports under the GSP. However, both sides are eager to avoid the prospect of a trade war, with the US already embroiled in one such conflict with China, and India having more to lose than gain from such a state. Hence, it is hardly surprising that there are high expectations from US Secretary of State Mike Pompeo’s visit to India next week. Officials with knowledge of the matter have said that they expect the US to push for some kind of trade deal to reduce tensions and resume the relationship between the two nations. The new Indian government, for its part, has already publicly stated that it does not see the GSP removal as a major cause for concern; hence, one can likely expect positive developments in Indo-US relations following Secretary Pompeo’s visit. The escalating trade conflict has already started to affect economic markers in India, with two separate reports predicting trouble for India’s gems and jewelry exports, and the wider GDP forecast, in the coming financial year. Meanwhile, in the domestic arena, the Indian government has begun a crackdown on exporters who have fraudulently claimed GST refunds on the basis of bogus invoices. Several “risky” exporters have already been identified, and the Central Board of Indirect Taxes and Customs (CBIC) has promised a full cleanup of the books while assuring genuine exporters that they would be unaffected by this process. As the government starts seeking to revitalize trade in the coming months, Indian exporters can likely expect further such streamlining and pruning of the country’s export-import sector.