NEW DELHI -- India is bracing for a sharp blow to its overseas trade as steep U.S. tariffs take effect on a range of Indian products Wednesday — a move that threatens over half of India’s exports to its largest market and highlights the fragile trade ties between the two countries.

India on Wednesday opened all gates of major dams on rivers in its part of the Kashmir region following heavy rains, and warned neighbouring Pakistan of the possibility of downstream flooding, an Indian government source said.

Pakistan evacuated at least 150,000 people in areas along three rivers in its agricultural heartland under threat of flooding after neighbouring India warned it plans to release excess water from a dam,