U.S. President Donald Trump’s threat to impose new tariffs on India over its participation in the BRICS forum puts New Delhi in a tough position as it races to finalize a favorable trade deal with the U.S.

Trump said Tuesday that India could face an additional 10% tariff alongside other members of BRICS — a bloc of emerging economies he has labeled "anti-American.” The remarks came just a day after the U.S. leader said he was close to finalizing a trade deal that New Delhi hopes would give it reprieve from 26% reciprocal tariffs.

The latest threat by the U.S. president followed a two-day BRICS summit in Brazil, in which leaders agreed on a joint statement that criticized trade-distorting tariffs. But while Brazil and South Africa have blasted Trump separately for his comments, India has refrained from responding publicly, a sign that it’s treading a fine line in maintaining its relationship with Washington.