India halts US arms deals as tariff clash strains ties: Reuters
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India has postponed plans to buy US weapons and aircraft after President Trump's new tariffs on Indian exports strained bilateral ties, though the defence ministry denies any pause in procurement.
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US Sergeant Jonathan Armitage from Pennsylvania launches a Javelin shoulder-launched anti-tank missile during a joint military exercise called "Balikatan," Tagalog for shoulder-to-shoulder at Fort Magsaysay, Nueva Ecija province, northern Philippines, Thursday, April 13, 2023 (AP Photo/Aaron Favila)
India has temporarily halted plans to acquire new American-made weapons and aircraft following steep tariff hikes by US President Donald Trump, in what officials say is the most tangible sign yet of friction between the two countries in decades.
Three Indian officials familiar with the matter told Reuters that New Delhi had intended to finalize several high-profile defence deals during an upcoming visit to Washington by Defence Minister Rajnath Singh. That trip has now been called off, two of the officials confirmed. The purchases in question include Stryker combat vehicles from General Dynamics, Javelin anti-tank missiles developed by Raytheon and Lockheed Martin, and six Boeing P8I reconnaissance aircraft for the Indian Navy.
Tariff Dispute
Trump announced on August 6 an additional 25% tariff on Indian exports, doubling the overall duty rate to 50%, as punishment for India's continued imports of Russian oil. He argued that Delhi was helping to finance Moscow's war in Ukraine. The president is known for abrupt reversals on trade measures, and Indian officials stressed that defence purchases could still proceed "just not as soon as they were expected to" once there is clarity on tariffs and the trajectory of bilateral relations.
Written orders to halt procurement have not been issued, another official said, meaning the decision could be quickly reversed. However, "there was no forward movement at least for now," the official added.
In a statement issued after Reuters published its findings, India's Ministry of Defence rejected reports of a pause, calling them "false and fabricated" and asserting that procurement was continuing "as per extant procedures."
Delhi has criticized Washington for singling it out over Russian oil while the US and its European allies continue trading with Moscow when it suits their interests. The Reuters report is the first to disclose that talks on the Stryker and Javelin purchases, announced jointly by Trump and Indian Prime Minister Narendra Modi in February, have been affected by the dispute.
India's Defence Balancing
India, the world's second-largest arms importer, has historically sourced most of its weaponry from Russia but has in recent years diversified toward Western suppliers such as the US, France and "Israel." The shift is partly due to Moscow's reduced export capacity during the war in Ukraine and Western assessments that some Russian systems have underperformed in combat.
Despite the current impasse, officials said intelligence-sharing and joint military exercises between the US and India remain unaffected. Delhi is also open to reducing Russian oil imports if it can secure comparable prices elsewhere, including from American suppliers. Still, one official noted that Trump's tariff decision and rising anti-US sentiment at home have "made it politically difficult for Modi to make the shift from Russia to the US."
Read more: India, Brazil push back against US tariffs amid BRICS discussions
Moscow, meanwhile, has been actively promoting new defence systems to India, including the S-500 air defence platform, though Indian officials say there is no immediate need for fresh purchases from Russia. Longstanding military ties mean India's armed forces will continue to rely on Russian technical support for existing systems.
