India pauses US arms negotiations after Trump slaps tariffs - Reuters
Photo: Narendra Modi and Donald Trump (Getty Images)
India has postponed talks on military contracts with the United States after sanctions for buying Russian oil. This is New Delhi's first concrete response to Donald Trump's actions, according to Reuters.
Indian Defense Minister Rajnath Singh was scheduled to go to Washington on an official visit. It was expected that new purchases would be announced there, but the trip was canceled.
Response to Trump's tariffs
On August 6, Trump imposed an additional 25% tariff on Indian goods. The reason was India's purchases of Russian oil, which finance the war against Ukraine.
The total amount of tariffs on Indian exports reached 50%, one of the highest among the US trading partners. India still prefers to consider such pressure unfair.
Frozen contracts
According to sources, discussions on the purchase of Stryker combat vehicles, Javelin missiles, and six Boeing P8I reconnaissance aircraft have been suspended. The deal for the aircraft was estimated at $3.6 billion and was in the final stages.
Despite the pause, there have been no written orders to completely cancel the deals. It means that New Delhi can quickly reconsider the decision if conditions change.
Defense partnership continues
Although major procurements have been postponed, other elements of defense cooperation between the two countries continue. Intelligence sharing and joint exercises remain in place.
India remains the largest importer of arms after Saudi Arabia. In recent years, it has shifted its focus from Russia to the United States, France, and Israel, but it does not plan to completely abandon Russian weapons.
Meanwhile, Russia offers India new defense technologies, including the S-500 air defense system. New Delhi is not interested in new purchases, but it does not want to completely stop military cooperation with Moscow.
In July, Russia supplied India with about 1.7 million barrels per day. However, Indian state-owned refineries are now reducing spot purchases in anticipation of New Delhi's official position. It is not yet clear what private refiners will do.
Oil prices fell sharply in early August after Trump's decision to punish India for helping Moscow in the war against Ukraine. Oil showed the worst mark since 2021. The price of Brent crude oil fell to $66 per barrel.
