India has suspended plans to acquire advanced weaponry and aircraft from the United States in a deal valued at $3.6 billion, a significant development attributed to recent tariff hikes imposed by Washington on Indian exports. This decision, as reported by Reuters, marks the first tangible consequence of the escalating trade tensions between the two countries. Additionally, the cancellation of Defence Minister Rajnath Singh’s planned visit to Washington highlights the strain in bilateral relations.
The package under consideration included key military assets such as Stryker combat vehicles from General Dynamics, Javelin anti-tank missiles developed in collaboration between Raytheon and Lockheed Martin, and six Boeing P8I reconnaissance aircraft intended for the Indian Navy. Announcements regarding these purchases were anticipated during Singh’s visit, which would have underscored the growing defense partnership between the US and India.
The diplomatic hurdle emerged following President Donald Trump’s decision on August 6 to impose an additional 25% tariff on select Indian goods, particularly in connection with India’s imports of Russian oil. This move raised the cumulative tariff on these imports to 50%, marking one of the highest rates imposed on any US trade partner.
Sources disclosed to Reuters that, despite Trump’s history of reversing tariff decisions, discussions regarding defense procurement are likely to remain stalled until there is increased clarity on trade policy and the overall direction of US-India relations. “For now, there has been no forward movement,” one official indicated.
India has publicly criticized the tariff measures as discriminatory, particularly noting that the US and other European nations maintain trade ties with Russia when it aligns with their interests. However, core aspects of the US-India defense relationship, including intelligence sharing and joint military exercises, continue to function despite the tensions.
India, recognized as the world’s second-largest arms importer, has traditionally relied on Russia for military equipment. Nevertheless, in recent years, there has been a noticeable shift in focus towards diversifying its sources of military hardware, including partnerships with the US, France, and Israel. Despite overtures from Moscow, such as offers related to the advanced S-500 missile system, officials in India indicate there are currently no plans for immediate new arms purchases from Russia.
