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.

One economist told Newsweek that companies may be wary of "consumer backlash" if they hike prices to mitigate the tariffs' impact.

TRUMP'S U.K. TRIP: President Donald Trump will return to Washington today after meeting with British Prime Minister Keir Starmer to discuss trade and the humanitarian crisis in Gaza and reaching a trade agreement with the European Union.

Ahead of his self-imposed tariff deadline, US President Donald Trump has said that a trade agreement with India has not yet been finalized. “India trade deal not been finalized,” said Trump. Asked whether India would face 20-25% tariff rates,

President Donald Trump said that India may be hit with a tariff rate of 20% to 25% but cautioned the final levy had still not been finalized as the two countries negotiate on a trade deal ahead of an Aug.

As President Donald Trump prepares to announce new tariff increases, the costs of his policies are starting to come into focus for a domestic manufacturing sector that depends on global supply

Donald Trump plans new import tariffs from August 1. A study says this may hurt US manufacturers. Costs could rise by 2% to 4.5%. This may lead to wage stagnation or layoffs. Trump says tariffs will boost US manufacturing.

The 15% tariff would be lower than previously threatened, but it would remain a high duty on America’s largest trading partner.