US President Donald Trump said India will be hit with 20% to 25% tariffs, even though trade talks between the two countries are still ongoing ahead of the August 1 deadline.
Trump stressed that India's actions to impose higher tariffs on almost all other countries are unacceptable, even though India is considered a good friend of the US.
The remarks were recorded while he was speaking on Air Force One on his way back to Washington after a five-day visit to Scotland.
Bloomberg reported that the US and India are negotiating a tariff reduction below 20% despite Prime Minister Narendra Modi's resistance to demands to open up the agriculture and dairy sectors.
India and the US have set terms of reference and a deadline for a trade deal with India hoping that an interim agreement can delay the increase in US import duties on Friday.
An Indian official said the country is still waiting for a response from the White House on tariffs this week, but remains optimistic that trade talks can be reached even if an interim agreement has not been reached.
US Trade Representative Jamieson Greer also said the US needed more time to assess India's readiness to open up more of its markets to American exports.
The Indian rupee continued to slide for a third day on the back of tariff threats, while the BSE Sensex erased early gains and moved flat. The local currency fell 0.5% to 87.24 against the dollar.
