US President Donald Trump has said that India may be hit with a tariff rate ranging from 20% to 25% as the two countries have yet to reach an agreement ahead of an August 1 deadline, reported newswire Bloomberg.

The U.S.-India trade deal has not been finalised, Trump told reporters. “India has been a good friend, but India has charged basically more tariffs than almost any other country over the years. But now, I am in charge and you just can’t do that,” the US President said.

This comes weeks after Trump suggested that India is working along the same lines as Indonesia in order to reach a trade deal with the United States. “We made a deal with Indonesia... We have full access to Indonesia. We will pay no tariffs. So, they are giving us access to Indonesia which we never had. That’s probably the biggest part of the deal. India, basically, is working along the same lines,” Trump told reporters earlier in July.

The US is going to have access to India, Trump had said. "We had no access to any of these countries. Now we are getting access because of what we are doing with the tariffs,” Trump said, adding that Indonesia is paying 19% tariffs while the US is not paying anything.

Trump stated that the pact with Indonesia is similar to previous deals made with Vietnam. It establishes a uniform tariff—almost twice the current 10%—on goods Indonesia exports to the U.S., while allowing American products to enter Indonesia duty-free. Additionally, the agreement includes measures to prevent Chinese goods from being rerouted through Indonesia and contains a pledge from Jakarta to buy American-made products.

Trump had earlier said that the upcoming trade deal between India and the US is going to be of a “different kind” with “much less tariffs”. "I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs," Trump had said.

Trump had unveiled a broad set of tariffs on April 2. As part of the "reciprocal tariff" plan, Indian exports to the U.S. were hit with an added 26% tariff. However, on April 9, the U.S. administration approved a 90-day delay in enforcing most of the tariffs, temporarily shifting back to a uniform 10% rate for nearly all affected countries.

Earlier in July, Trump sent tariff letters to 14 countries: Bangladesh, Cambodia, Indonesia, Myanmar, Malaysia, Thailand, Japan, Korea, South Africa, Kazakhstan, Laos, Tunisia, Serbia and Bosnia and Herzegovina. Neighbouring Bangladesh faces a 35% reciprocal tariff rate from August 1.