President Donald Trump has said that India may be hit with a tariff rate of 20 per cent to 25 per cent but cautioned the final levy had still not been finalised as the two countries negotiate on a trade deal ahead of an August 1 deadline, a Bloomberg report said on Tuesday.

“I think so,” Trump told reporters Tuesday when asked if that was a possible tariff rate for New Delhi.

“India has been a good friend, but India has charged basically more tariffs than almost any other country,” Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. “You just can’t do that.”

The President was commenting ahead of an August 1 deadline when a slew of so-called reciprocal tariffs are set to take effect on dozens of trading partners. Trump announced higher levies in April, before pausing those tariffs at a reduced 10 per cent rate to allow time for negotiations. Despite an extended deadline, Trump has only secured a handful of deals.

US Trade Representative Jamieson Greer said Monday that the US needed more time for talks with India to gauge the country’s willingness to open its market more to American exports.

A Reuters report had earlier said India was preparing to face higher US tariffs — likely between 20 per cent and 25 per cent — on some of its exports as a temporary measure, as it holds off on fresh trade concessions ahead of Washington’s August 1 deadline.

Instead, New Delhi plans to resume broader trade negotiations when a US delegation visits in the middle or end of August, with the goal of finalising a comprehensive bilateral agreement by September or October, Indian officials told Reuters.

“Talks are progressing well, and a delegation is expected in Delhi by mid-August,” one of the Indian government officials said, adding that President Donald Trump could issue a tariff letter imposing duties of 20 or 25 per cent in a “worst-case scenario”.

“However, we assume it would be a temporary measure, considering the five rounds of trade talks that have taken place. A deal will soon be worked out,” the official said.