United States (US) President Donald Trump has threatened to raise tariffs on Indian imports by as much as 25 percent if a trade deal with the US is not finalised this week.

 

“Yeah, I think so. India has been a good friend, but India has charged basically more tariffs, almost more than any other country," the US President told a reporter aboard Air Force One on Tuesday, adding that a trade deal had yet to be finalised.

 

His response came after the reporter asked whether New Delhi would face tariffs of 20 to 25 percent if an agreement was not reached.

 

Trump has not yet sent a letter to India setting a new tariff rate.

 

On Monday, CNBC quoted US Trade Representative Jamieson Greer as claiming that an elusive India trade agreement would require more discussion between the two countries.

 

“They have expressed strong interest in opening portions of their market. We, of course are willing to continue talking to them,” Greer said. 

 

“But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be,” he added.

 

According to Commerce Department data, the US imported $87 billion worth of goods from India last year. Meanwhile, India imported $42 billion worth of goods from the US. The top goods the US received from India included pharmaceuticals, communications equipment, such as smartphones, and apparel.

 

The US has set a deadline of 1 August for India and dozens of other countries to either reach a trade agreement or face increased tariffs.