The escalating trade dispute between India and US has hit a new low with India pausing key arms purchases from US. Reports reveal that India cancelled Defence Minister Rajnath Singh’s planned Washington visit, which aimed to finalise several defence deals.
This development marks a concrete sign of India’s displeasure following steep US tariffs on Indian exports linked to India’s continued Russian oil imports.
US Tariffs Trigger Defence Purchase Freeze
India had been gearing up to announce major procurements, including Stryker combat vehicles and Javelin anti-tank missiles. However, three Indian officials disclosed that India has put these plans on hold.
India cancelled Rajnath Singh’s Washington trip, which aimed to finalise a $3.6 billion deal for six Boeing P-8I reconnaissance aircraft and naval support systems.
US President Donald Trump imposed an additional 25 per cent tariff on Indian goods on August 6, increasing the total US tariff burden on India to 50 per cent, one of the highest among US trading partners. The tariffs punish India’s ongoing purchase of Russian oil, which Washington claims indirectly funds Russia’s war in Ukraine.
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While India has not officially ordered a halt, officials say there is no forward movement on defence buys for now. The purchases could resume once India gets clarity on the tariff situation and the future of bilateral relations.
Long-Standing Defence Ties Under Strain
India has built a close security partnership with the US, especially amid its strategic rivalry with China, which the Trump administration hailed as a foreign policy highlight.
India remains Russia’s second-largest munitions importer, despite an increase in Western military shipments. New Delhi has increasingly turned to countries like the US, Israel, and France in recent years.
The choice to stop buying shows how defence cooperation is impacted by trade disagreements. Officials said there has been no significant disruption to India’s military-to-military relations with the United States, which include intelligence sharing and joint exercises.
Energy Security and Political Complexities
India argues that energy security depends on its purchases of Russian oil. If prices coincide, India has stated that it is willing to reduce purchases and look into other options, such as US oil. However, quick departures from Moscow are complicated by political realities and growing anti-US sentiment in India.
Russia is aggressively promoting new defence technologies, like the S-500 missile system, to India. However, Indian officials say that while they do not currently see a need for new Russian weapons, they do see the necessity for continued support for current Russian systems.
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Trade Policy as a Strategic Lever
This shows how economic tools like tariffs have become strategic levers in broader geopolitical contests. US is signalling to India that trade policies can influence defence partnerships and foreign policy choices. India, in turn, must balance economic interests, defence modernisation, and geopolitical autonomy carefully.
As India navigates this complex terrain, the interplay between trade and security will shape the future of its ties with Washington—and possibly its standing on the global stage.
