India pauses US arms deals after Trump’s tariff hike

New Delhi has put on hold its plans to procure new US weapons and aircraft, according to three Indian officials familiar with the matter, marking a clear sign of discontent after tariffs imposed on its exports by President Donald Trump strained bilateral ties to their lowest level in decades.

Defence Minister Rajnath Singh’s planned visit to Washington to announce some of these purchases has been cancelled, two of the sources said.

Reuters reports that this pause in procurement comes after Trump on August 6 imposed an additional 25% tariff on Indian goods in response to Delhi’s purchases of Russian oil, which the US administration said was effectively funding Russia’s attack of Ukraine. This tariff increase brought the total duties on Indian exports to 50%, among the highest of any US trading partner.

India remains actively engaged in discussions with Washington. One official said the defence purchases could proceed once India gains clarity on tariffs and the overall direction of bilateral ties, but “just not as soon as they were expected to,” Reuters added. Another official noted that no formal instructions have been issued to pause the purchases, indicating Delhi could quickly reverse its decision, though “there was no forward movement at least for now.”

Delhi, which has forged a closer partnership with the US in recent years, has maintained that it is being unfairly targeted, pointing out that Washington and its European allies continue to trade with Moscow when it suits their interests.

Discussions on India’s purchases of Stryker combat vehicles made by General Dynamics Land Systems and Javelin anti-tank missiles developed by Raytheon and Lockheed Martin have been paused due to the tariffs, Reuters reported. Trump and Indian Prime Minister Narendra Modi had announced in February plans to pursue procurement and joint production of these items.

Singh had also been expected to announce the purchase of six Boeing P8I reconnaissance aircraft and support systems for the Indian Navy during his now-cancelled trip, two officials said. Talks over procuring the aircraft in a proposed $3.6 billion deal were at an advanced stage, according to the sources.

Boeing, Lockheed Martin, and General Dynamics referred queries to the Indian and US governments, Reuters said. Raytheon did not respond to requests for comment.

India’s growing security partnership with the US had been viewed by many analysts as a significant achievement of the first Trump administration. India is the world’s second-largest arms importer and has traditionally sourced much of its weaponry from Russia. However, in recent years it has diversified, increasingly procuring from Western countries including the US, France, and Israel, according to the Stockholm International Peace Research Institute.

This shift has been partly driven by Russia’s limited arms export capacity amid its ongoing attack of Ukraine, as well as reports that some Russian weapons have underperformed on the battlefield. One Indian official said the broader defence partnership with the US, including intelligence sharing and joint exercises, continues smoothly despite the current procurement pause.

India also remains open to reducing its oil imports from Russia and making purchases elsewhere, including from the US, if prices are competitive, according to two Indian sources. However, one official noted that Trump’s tariff threats and growing anti-US nationalism in India have made it politically difficult for Prime Minister Narendra Modi to fully shift away from Russia.

Delhi has rebutted Trump’s claims that the US brokered a ceasefire between India and Pakistan following recent fighting.

Moscow has also been actively promoting new defence technologies to India, including the S-500 surface-to-air missile system, according to an Indian official and a Russian source familiar with the talks. Yet India currently does not see an immediate need for new arms from Russia, two officials said.

Nevertheless, India is unlikely to fully wean itself off Russian weaponry given the longstanding partnership and the need for Moscow’s ongoing support of Indian military systems, one official added.