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India's benchmark shares are likely to open muted on Tuesday due to uncertainty over U.S. trade policies, as President Donald Trump announced steep import tariffs on several trading partners while signalling that a deal with India was close.

The Gift Nifty futures were trading at 25,495.5 points as of 8:06 a.m. IST, indicating that the Nifty 50 will open near its previous close of 25,461.3.

Trump on Monday began telling trade partners that the higher U.S. tariffs will start August 1, marking a new phase in the trade war he launched earlier this year. Trump, who announced a 25% levy on key Asian allies Japan and South Korea, added that U.S. was close to striking a deal with India.

Tariffs are expected to increase prices and slow growth, although uncertainty over the ultimate policies may be a bigger drag as it leads businesses to postpone decisions.

Wall Street slid, with the S&P 500 Index logging its biggest drop in three weeks. Asian markets were mixed on the day, with MSCI's broadest index for Asia-Pacific stocks outside Japan down 0.1%. [MKTS/GLOB]

Trump in April capped all of the so-called reciprocal tariffs with trading partners at 10% until July 9 to allow for negotiations. Only two agreements, with Britain and Vietnam, have been reached so far.

India's benchmark indexes Nifty and Sensex ended little changed on Monday, as gains in consumer stocks, led by Godrej Consumer, offset broader market losses, while investor caution lingered. The Nifty and Sensex remain about 3% below their record highs hit on Sept. 27, 2024.

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** Tata Motors Britih subsidiary Jaguar Land Rover reports a 10.7% drop in first-quarter sales, hit by a temporary pause in shipments to the U.S and a wind-down of the Jaguar brand's legacy models