The warning follows Trump’s earlier move this month to slap an additional 25% levy on India for continuing to buy Russian crude and weapons, doubling existing tariffs to a 50% penalty. The new rate — set to take effect on August 27 — would make India the most heavily taxed U.S. trading partner in Asia.

U.S. Treasury Secretary Scott Bessent on Tuesday said several large trade agreements were still waiting to be completed, including with Switzerland and India, but the South Asian country had been "a bit recalcitrant" in talks with the United States.

But experts say India's refusal to reduce duties on agriculture and dairy products has been a major thorn in the negotiations. Trump's new 50% tariff rate on India is set to come into effect on 27 August, which some experts have said is akin to an embargo on trade between the two countries.