India Pauses U.S. Arms Purchases Amid Tariff Dispute
India has reportedly suspended plans to acquire billions in U.S. military equipment following the TRUMP administration's decision to double tariffs on Indian exports to 50%. The move, effective August 6, targets New Delhi's continued imports of Russian oil, seen as indirectly funding Moscow's war in Ukraine.
Key defense deals now on hold include Stryker combat vehicles, Javelin anti-tank missiles, and Boeing P-8I maritime reconnaissance aircraft—the latter involving a $3.6 billion naval procurement. Defense Minister Rajnath Singh canceled a planned Washington visit to finalize these agreements, signaling a diplomatic chill.
While Indian officials deny any procurement suspension, calling reports "false and fabricated," the tariff escalation marks a significant strain in U.S.-India defense cooperation. The relationship, long positioned as a counterweight to Chinese influence in Asia, faces its toughest test yet amid overlapping trade and geopolitical tensions.