India halts US arms deals after Trump's tariff hike on exports
Pakistan, Aug. 8 -- India has paused new arms deals with the United States after President Donald Trump imposed harsh tariffs on Indian exports. The move signals growing tensions between the two allies. Officials in Delhi said a planned visit by Defence Minister Rajnath Singh to Washington has been cancelled. The visit was meant to finalize major defence deals. But now, India is reassessing its options.
Trump raised tariffs by 25% on Indian goods as punishment for India's Russian oil imports. The total duty now stands at 50%-one of the highest rates for any US trade partner. Trump accused India of funding Russia's war in Ukraine. In response, India decided to freeze progress on several planned US arms purchases. However, talks could resume if tariffs ease.
The halted deals include Stryker combat vehicles and Javelin anti-tank missiles. Singh was also expected to announce a $3.6 billion deal for six Boeing P8I aircraft. Those talks were reportedly in advanced stages. While no official written order has been issued, sources said there's no progress on the deals "for now."
Despite the tension, defence cooperation between India and the US continues in other areas. Joint exercises, intelligence sharing, and military exchanges remain unaffected. India says it still values ties with Washington but feels unfairly targeted. Meanwhile, Russia continues to pitch advanced weapons to India, including its S-500 missile system.
India has not ruled out reducing Russian oil imports if other suppliers offer similar prices. But Trump's actions have made it politically harder for Modi to shift fully away from Moscow. Analysts say India won't abandon Russian arms anytime soon due to decades of military dependence. Still, the latest tariff standoff may reshape future defence alignments.