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India halts US arms talks after Trump tariffs strain ties 

August 8, 2025
in Economy & Technology
Reading Time: 3 mins read
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NEW DELHI: India has put on hold plans to procure new US weapons and aircraft, three Indian officials said, in its first concrete sign of discontent after tariffs imposed by President Donald Trump pushed ties to their lowest point in decades.

The paused purchases include Stryker combat vehicles, Javelin anti-tank missiles, and several Boeing aircraft, the officials said. Defence Minister Rajnath Singh’s planned trip to Washington for the announcements has been cancelled.

Trump on Aug. 6 imposed an additional 25% tariff on Indian goods over Delhi’s Russian oil purchases, raising total US duties on Indian exports to 50% — among the highest for any trading partner. He said the oil imports were helping fund Russia’s war in Ukraine.

Indian officials said the defence deals could still proceed once there is clarity on tariffs and the future of bilateral ties, but “not as soon as expected.” Written orders to pause the purchases have not been issued, allowing for a quick reversal.

Following publication of this report, India’s government issued a statement calling reports of a pause “false and fabricated,” saying procurement was progressing as per “extant procedures.”

Details of paused deals

The halted talks involve Stryker combat vehicles from General Dynamics Land Systems and Javelin missiles from Raytheon and Lockheed Martin — items Trump and Prime Minister Narendra Modi had announced plans for in February.

Singh was also due to announce the purchase of six Boeing P8I reconnaissance aircraft and related systems for the Indian Navy in a $3.6 billion deal. Talks on the aircraft were at an advanced stage, the officials said.

Boeing, Lockheed Martin, and General Dynamics referred questions to the Indian and U.S. governments. Raytheon did not respond to a request for comment.

Context – Russia and defence ties

India’s deepening defence partnership with the Uص, driven by shared rivalry with China, has been seen as a key foreign policy achievement of Trump’s first term.

Delhi is the world’s second-largest arms importer and long relied on Russia. In recent years, however, it has shifted towards suppliers such as France, Israel and the Uص, partly due to Russia’s reduced export capacity and poor battlefield performance of some weapons in Ukraine.

The broader US-India defence relationship — including intelligence sharing and joint military exercises — remains unaffected, one official said.

Oil imports and political headwinds

India is open to reducing Russian oil imports if it can secure similar prices elsewhere, including from the US, two Indian sources said. But rising anti-US sentiment and Trump’s rhetoric have made it politically difficult for Modi to pivot away from Russia, one official noted.

Discounts on Russian oil have recently fallen to their lowest since 2022. The petroleum ministry did not respond to a request for comment.

Strains in ties

The tariff dispute is the latest strain in relations. Delhi has rejected Trump’s claim that the U.S. brokered a ceasefire with Pakistan after four days of fighting in May, and noted his White House meeting with Pakistan’s army chief weeks later.

Cultural tourism packages

Russia, meanwhile, has been courting India with offers of advanced systems such as the S-500 air defence platform, sources said. While India sees no immediate need for new Russian purchases, it remains reliant on Moscow for maintenance and spare parts due to decades of defence cooperation.

The Russian embassy in Delhi did not respond to a request for comment.

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