New Delhi has put on hold its plans to procure new U.S. weapons and aircraft, according to three Indian officials familiar with the matter, in India's first concrete sign of discontent after tariffs imposed on its exports by President Donald Trump dragged ties to their lowest level in decades.
India had been planning to send Defence Minister Rajnath Singh to Washington in the coming weeks for an announcement on some of the purchases, but that trip has been cancelled, two of the people said.
Trump on Aug. 6 imposed an additional 25% tariff on Indian goods as punishment for Delhi's purchases of Russian oil, which he said meant the country was funding Russia's invasion of Ukraine. That raised the total duty on Indian exports to 50% - among the highest of any U.S. trading partner.
The president has a history of rapidly reversing himself on tariffs and India has said it remains actively engaged in discussions with Washington. One of the people said the defence purchases could go ahead once India had clarity on tariffs and the direction of bilateral ties, but "just not as soon as they were expected to."
Written instructions had not been given to pause the purchases, another official said, indicating that Delhi had the option to quickly reverse course, though there was "no forward movement at least for now."
Post publication of this story, India's government issued a statement it attributed to a Ministry of Defence source describing news reports of a pause in the talks as "false and fabricated." The statement also said procurement was progressing as per "extant procedures."
Delhi, which has forged a close partnership with America in recent years, has said it is being unfairly targeted and that Washington and its European allies continue to trade with Moscow when it is in their interest.
Reuters is reporting for the first time that 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 (LMT.N), opens new tab have been paused due to the tariffs.
Trump and Indian Prime Minister Narendra Modi had in February announced plans to pursue procurement and joint production of those items.
Singh had also been planning to announce the purchase of six Boeing P8I reconnaissance aircraft and support systems for the Indian Navy during his now-cancelled trip, two of the people said. Talks over procuring the aircraft in a proposed $3.6 billion deal were at an advanced stage, according to the officials.
Boeing, Lockheed Martin and General Dynamics referred queries to the Indian and U.S. governments. Raytheon did not return a request for comment.
Source: Reuters
The Federal Reserve is seen as more likely to slash interest rates at its upcoming policy meeting in September following President Donald Trump's nomination of a temporary governor of the central bank...
Switzerland's government will hold an emergency meeting on Thursday to decide its next move after its president returned home empty-handed from an 11th-hour trip to Washington aimed at averting a crip...
A worst-case scenario for India on U.S. tariffs is now the base case. New Delhi called Donald Trump's decision on Wednesday to double the levy on the South Asian nation's goods to 50% because of its R...
President Donald Trump said Treasury Secretary Scott Bessent told him he did not want to be nominated to replace Jerome Powell as the next chair of the Federal Reserve. ...
Russia accused the United States on Tuesday of exerting illegal trade pressure on India after U.S. President Donald Trump threatened again to raise tariffs on India over its purchases of Russian oil. ...
U.S. stocks edged higher Friday as investors digested Trump's new selection to temporarily fill a vacancy on the Fed's Board of Governors and assessed an ebbing stream of corporate earnings. At 09:35 ET (13:35 GMT), the Dow Jones Industrial...
Oil steadied after a run of declines, as traders await US President Donald Trump's next moves to halt the war in Ukraine after he announced tariffs on India this week for taking Russian oil. Brent was marginally higher above $66 a barrel,...
New Delhi has put on hold its plans to procure new U.S. weapons and aircraft, according to three Indian officials familiar with the matter, in India's first concrete sign of discontent after tariffs imposed on its exports by President Donald Trump...
European shares closed higher on Tuesday, buoyed by better-than-expected corporate earnings and renewed optimism that the Federal Reserve may cut...
Donald Trump said he would impose a 100% tariff on semiconductor imports, though it would exempt companies that move production back to the United...
European shares closed flat on Wednesday, surrendering early session gains, as healthcare stocks felt the pinch from U.S. President Donald Trump's...
Switzerland's government will hold an emergency meeting on Thursday to decide its next move after its president returned home empty-handed from an...