India rejected reports of halting US defence purchases, calling them baseless. The Ministry of Defence clarified all procurement is on track, refuting claims that recent US trade tariffs had prompted delays in weapon and aircraft deals.
The Ministry of Defence on Friday dismissed media reports claiming India had paused talks on defence purchases from the United States, calling them ‘false and fabricated’. It said all procurement cases are progressing as per existing procedures, countering a Reuters report that cited unnamed officials suggesting New Delhi had delayed planned weapon and aircraft acquisitions amid tensions over US trade tariffs.
“The news reports on India pausing the talks related to defence purchases with the US are false and fabricated. It is clarified that the various cases of procurement are being progressed as per the extant procedures,” said Defence Ministry officials.
A Reuters report claimed earlier today that India has paused the plans to buy new US weapons and aircraft, including Stryker combat vehicles from General Dynamics and Javelin anti-tank missiles made by Raytheon and Lockheed Martin. Citing three Indian officials, the report described it as the first clear sign of India’s displeasure after President Donald Trump’s tariffs on Indian exports pushed bilateral ties to a low point. It added that Defence Minister Rajnath Singh’s planned trip to Washington for an announcement on some of these deals has been cancelled.
US hikes tariffs on Indian imports over Russian oil
On Wednesday, August 6, US President Donald Trump signed an Executive Order imposing an additional 25% tariff on imports from India, effectively doubling the total levy to 50%. The White House cited national security and foreign policy concerns, claiming India’s ongoing imports of Russian oil, directly or indirectly, pose an “unusual and extraordinary threat” to the United States. The order, issued under emergency economic powers, will apply to all Indian goods entering US ports, except those already in transit or falling under exempt categories. According to US officials, the initial 25% tariff took effect on August 7, and the latest hike will be implemented in 21 days.
India calls move ‘unfair’ and vows to protect its interests
Reacting strongly, the Ministry of External Affairs (MEA) called the additional tariffs ‘unfair, unjustified and unreasonable” and said New Delhi will take all actions necessary to protect its national interests’. Earlier on Thursday, Trump told reporters there would be no trade negotiations with India until the tariff dispute is resolved. His comments came hours after cancelling the prospect of talks, despite earlier plans for continued engagement. The sudden escalation marks a fresh strain in bilateral ties, with the trade rift now tied directly to India’s stance on Russian oil imports.
Indian Industry slams US tariffs, eyes alternatives
US President Donald Trump’s decision to impose an additional 25% tariff on Indian goods, effectively doubling the levy to 50%, has sparked strong reactions from Indian industry leaders. ANI quoted Mohit Singla, founder chairman of the Trade Promotion Council of India, calling the move ‘an unjustified approach towards Indian exports’ and suggested it appeared to ‘single out India in the global market.’ While warning that New Delhi has both legal and strategic options to counter the move, he urged exporters to explore alternative markets beyond the US. Despite the uncertainty, Singla struck an optimistic note, expressing confidence that the Indian government would ‘navigate this tough time’ and negotiate a resolution with Washington.
Exporters stay watchful but optimistic
Some industry stakeholders are taking a wait-and-watch approach while stressing the strong reputation Indian products enjoy globally. JCB India’s CEO and managing director, Deepak Shetty, told ANI that his company was closely monitoring the new tariff rules and their eventual impact, but noted that exports had received ‘a very positive response’ abroad, with products acting as ‘ambassadors from India’. This goodwill, he believes, will help sustain demand once the dispute settles. The sentiment was echoed by Prashant Girbane, director general of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), who praised the government’s calm and measured handling of the situation. Girbane voiced hope that ‘sense would prevail’ in Washington, leading to more reasonable and mutually acceptable tariff terms through negotiations.
(With ANI inputs)