Trump says ‘good friend’ India may face up to 25% tariffs

India could face tariffs as high as 25% if it fails to finalise a trade deal with the US this week, President Donald Trump has said.

“Yeah, I think so,” he told reporters on Tuesday when asked whether Delhi would face higher tariffs in the absence of an agreement.

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

Indian and American officials have been negotiating a trade deal for the past few months, but officials have alternated between sounding optimistic and cautious about when it will be announced.

When asked about what he expected from a potential deal with India, Trump said: “We’re going to see. India has been a good friend, but India has charged basically more tariffs than almost any other country”.

“But now I’m in charge, and you just can’t do that,” he added.

Tariffs are taxes charged on goods imported from other countries. The US president has repeatedly taken aim at India’s high tariffs, branding it a “tariff king” and a “big abuser” of trade ties.

Trump has not yet sent a letter to India setting a new tariff rate – as he has with more than a dozen other trading partners.