India and Pakistan's reciprocal actions following the killing of 26 men by suspected militants at a tourist spot in Kashmir are set to further curtail trade, which has more than halved since 2018, trade analysts and exporters said.

Indian officials said the army had a brief exchange of fire with Pakistani soldiers along their highly militarized frontier in the Himalayan region of Kashmir, as the nuclear-armed rivals ramped up tit-for-tat diplomatic offensive following a deadly attack on tourists in the disputed area.

NEW DELHI — A deadly attack on tourists in Indian-controlled Kashmir has again moved India and Pakistan closer to war as the two rivals downgraded diplomatic and trade ties, closed the main border crossing and revoked visas for each other’s nationals.