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
Israeli strikes on Nasser hospital in Gaza on Monday killed at least 15 people, including four journalists, one of whom worked for Reuters, Palestinian health officials said. Cameraman Hussam al-Masr...
Ukrainian President Volodymyr Zelenskiy said he has not been in contact with Russia regarding potential peace talks, although his dialogue with the US is ongoing. Speaking at a joint press conference...
Russia attacked a civilian factory in western Ukraine owned by the US company Flex Ltd, causing a massive fire and injuring at least 15 people. Local authorities said that at approximately 4:40 a.m. l...
Donald Trump urged Russia's Vladimir Putin and Ukraine's Volodymyr Zelenskiy to show "flexibility" as the US president seeks to expedite his efforts to end the war in Ukraine. "I hope President Putin...
S&P Global Ratings stated that revenue from Donald Trump's tariffs will help mitigate the impact of the president's tax cuts on US fiscal health, allowing the country to maintain its current credi...
European markets closed lower on Monday as investors assessed the economic outlook following signals from Federal Reserve Chairman Jerome Powell that interest rate cuts may be coming soon. The pan-European STOXX 600 dropped 0.5% at the start of...
Gold (XAU/USD) kicks off the week on a softer footing after touching a two-week high on Friday, following Federal Reserve (Fed) Chair Jerome Powell's dovish remarks at the Jackson Hole Symposium that fueled a broad rally in precious metals. At the...
Sales of new single-family homes in the United States eased by 0.6% from the previous month to a seasonally adjusted annualized rate of 652,000 units in July of 2025, trimming the revised 4.1% increase in the earlier period and above market...
Investors cheered Federal Reserve Chair Jerome Powell's Jackson Hole address, which gave a green light to buy risky assets on the hope the central...
US stocks soared on Friday after Fed Chair Powell signaled the possibility of a September rate cut during his Jackson Hole speech, sparking the...
Russian President Vladimir Putin expressed optimism about improving relations between Russia and the United States during a visit to a nuclear...
Asia-Pacific rose Monday, tracking Wall Street gains after Federal Reserve Chair Jerome Powell signaled that the central bank could begin easing...