U.S. President Donald Trump said a trade deal with India has yet to be finalised and warned of possible higher tariffs ahead of an August 1 deadline to seal an agreement, Reuters reported.

His comments followed a Reuters report that India was preparing to accept higher tariffs of 20%-25% on its exports to the U.S. in the absence of a trade deal, as it holds off on offering fresh concessions ahead of Friday's deadline.

"India has been a good friend, but India has charged basically more tariffs, almost more than any other country," Trump told reporters aboard Air Force One on Tuesday, adding that would come to an end, according to Reuters.

Asked about the Reuters report, Trump said a trade deal had not been finalised and India could face steeper tariffs