India Halts U.S. Arms Deal Over Tariffs Amid Trade Tensions

U.S.-made military vehicle. X/ @ronkainen7k15
August 8, 2025 Hour: 11:38 am
Defense Minister Singh canceled a trip to the U.S. that was reportedly linked to the military procurement.
On Friday, international media reported that India has temporarily suspended its plans to purchase U.S. weapons and aircraft in response to the imposition of new American tariffs on Indian products.
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Indian Defense Minister Rajnath Singh canceled a trip to the United States that was reportedly linked to the potential military procurement.
Estimated at around US$3.6 billion, the deal included General Dynamics Land Systems Stryker combat vehicles, Javelin anti-tank missiles developed by Raytheon and Lockheed Martin, and six Boeing P-8I maritime patrol aircraft along with their support systems.
However, the acquisition of U.S. military equipment has not been permanently scrapped. It could move forward later, once there is more clarity regarding the tariffs and the direction of bilateral relations, a source from the Indian government told Reuters.
On Aug. 6, U.S. President Donald Trump announced an additional 25% tariff on Indian exports in retaliation for New Delhi’s purchase of Russian oil. With this measure, the total duty on certain Indian goods now stands at 50%—one of the highest rates imposed by Washington on a trading partner.
In response to the tariffs, Prime Minister Narendra Modi stated that “even if we have to pay a high price,” his government will defend domestic production, which has been affected by the U.S. trade war.
teleSUR/ JF
Sources: NDTV – Reuters