India puts US defence deals on hold after tariff spat

Fri, 08 August 2025
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17:05
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India has paused plans to procure new weapons and aircraft from the United States, marking the first clear indication of displeasure after President Donald Trump raised tariffs on Indian exports, according to a Reuters report. 

Defence Minister Rajnath Singh was to visit Washington for a formal announcement regarding some of the proposed purchases, said the report quoting three Indian officials familiar with the development. 

The visit has now been cancelled, the report said. 

The decision follows Trump's move on August 6 to impose an additional 25 percent tariff on Indian goods, in protest against India's continued import of Russian oil. 

With this, the total duty on Indian exports to the US has climbed to 50 percent -- one of the steepest for any American trade partner. 

Trump claimed the oil purchases were indirectly funding Russia's war in Ukraine. 

Although India is still in dialogue with Washington, officials said defence deals will not proceed until there is more clarity on the tariff issue and the overall direction of bilateral ties. 

One official remarked that the purchases may still happen, just not as soon as they were expected to.    

No formal directive has been issued to freeze the deals, and sources said Delhi retains the flexibility to move forward if relations improve. However, as of now, no progress is being made.