President Donald Trump on Tuesday threatened to raise tariffs on Indian imports as high as 25% if the allied nations cannot complete a long-sought trade agreement.

“They are going to pay 25%,” Trump said.

When asked by a reporter if India would pay tariffs of 20% to 25%, Trump said, “Yeah, I think so. India has been – they’re my friends.”

US Trade Representative Jamieson Greer told CNBC Monday 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.”

Trump in recent trade agreements has doubled do

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