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India pauses plans to buy US arms after Trump tariffs
India pauses plans to buy US arms after Trump tariffs

Kuwait Times

time2 days ago

  • Business
  • Kuwait Times

India pauses plans to buy US arms after Trump tariffs

Defense minister cancels planned trip to Washington NEW DELHI: New Delhi has put on hold its plans to procure new US 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 Defense 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 percent 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 percent - among the highest of any US 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 defense 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 Defense 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 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 US governments. Raytheon did not return a request for comment. India's deepening security relationship with the US, which is fuelled by their shared strategic rivalry with China, was heralded by many US analysts as one of the key areas of foreign-policy progress in the first Trump administration. Delhi is the world's second-largest arms importer and Russia has traditionally been its top supplier. India has in recent years however, shifted to importing from Western powers like France, Zionist entity and the US, according to the Stockholm International Peace Research Institute think-tank. The shift in suppliers was driven partly by constraints on Russia's ability to export arms, which it is utilizing heavily in its invasion of Ukraine. Some Russian weapons have also performed poorly in the battlefield, according to Western analysts. The broader US-India defense partnership, which includes intelligence sharing and joint military exercises, continues without hiccups, one of the Indian officials said. India also remains open to scaling back on oil imports from Russia and is open to making deals elsewhere, including the US, if it can get similar prices, according to two other Indian sources. Trump's threats and rising anti-US nationalism in India have 'made it politically difficult for Modi to make the shift from Russia to the US,' one of the people said. Nonetheless, discounts on the landing cost of Russian oil have shrunk to the lowest since 2022. India's petroleum ministry did not immediately respond to a request for comment. While the rupture in US-India ties was abrupt, there have been strains in the relationship. Delhi has repeatedly rebutted Trump's claim that the US brokered a ceasefire between India and Pakistan after four days of fighting between the nuclear-armed neighbors in May. Trump also hosted Pakistan's army chief at the White House in the weeks following the conflict. In recent months, Moscow has been actively pitching Delhi on buying new defense technologies like its S-500 surface-to-air missile system, according to one of the Indian officials, as well as a Russian source familiar with the talks. India currently does not see a need for new arms purchases from Moscow, two Indian officials said. But Delhi is unlikely to wean itself off Russian weapons entirely as the decades-long partnership between the two powers means Indian military systems will continue to require Moscow's support, one of the officials said. The Russian embassy in Delhi did not immediately respond to a request for comment. – Reuters

India Freezes US Arms Purchases Amid Trump's Tariff Hike
India Freezes US Arms Purchases Amid Trump's Tariff Hike

See - Sada Elbalad

time2 days ago

  • Business
  • See - Sada Elbalad

India Freezes US Arms Purchases Amid Trump's Tariff Hike

Israa Farhan India has suspended plans to acquire new American-made weapons and aircraft in a sharp sign of deteriorating ties between New Delhi and Washington, following US President Donald Trump's decision to impose steep new tariffs on Indian exports. According to informed sources, India also canceled a planned visit by Defense Minister Rajnath Singh to Washington, as trade tensions between the two nations intensify. On August 6, Trump announced an additional 25% tariff on imports from India as punishment for New Delhi's continued purchase of Russian oil. This move brings the total tariff rate on Indian goods to 50%—one of the highest levels imposed on any U.S. trading partner. Although Trump has a history of reversing tariff decisions abruptly, India has made it clear that the new measures are straining bilateral relations. New Delhi insists it is being unfairly targeted, pointing out that Washington and its European allies still trade with Moscow when it suits their interests. Sources indicated that India could resume defense procurement once there is greater clarity on tariffs and the direction of bilateral ties, but 'not at the pace originally expected.' The suspension has directly impacted negotiations for key defense acquisitions, including the purchase of Stryker armored combat vehicles from General Dynamics Land Systems and Javelin anti-tank missiles jointly developed by Raytheon and Lockheed Martin. India and the US have built a close strategic partnership in recent years, but this latest dispute underscores how quickly geopolitical frictions can derail major defense and trade deals. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results

Has India really paused US defence deals over Trump's tariff hike? A fact-check
Has India really paused US defence deals over Trump's tariff hike? A fact-check

First Post

time2 days ago

  • Business
  • First Post

Has India really paused US defence deals over Trump's tariff hike? A fact-check

India's Ministry of Defence has denied reports that it halted major US arms purchases following Trump's decision to double tariffs on Indian exports. While media claims suggest deals for Stryker combat vehicles, Javelin missiles and P-8I aircraft are delayed, officials insist all procurements are moving forward under existing procedures despite the trade dispute read more A view shows a Stryker armoured vehicle with the Washington Monument in the background on the day of a military parade to commemorate the US Army's 250th Birthday in Washington, DC, US, June 14, 2025. File Image/Reuters The tensions had long been simmering but they hit boiled over this week when United States President Donald Trump announced a 25 per cent increase in tariffs on Indian exports, on top of the existing duties, raising the total rate to 50 per cent. The White House linked this decision to India's continued imports of discounted Russian oil, which Trump argued contributed to Moscow's war in Ukraine. The announcement placed India among the most heavily taxed US trading partners. New Delhi quickly condemned the measure, calling it 'unfair, unjustified and unreasonable.' STORY CONTINUES BELOW THIS AD The Ministry of External Affairs also pledged to take 'all actions necessary' to protect the country's economic and strategic interests. Almost immediately, international media began reporting that India had quietly shelved plans to acquire several high-value US defence systems in response to the tariff escalation. These claims suggested that ongoing discussions for Stryker combat vehicles produced by General Dynamics Land Systems, Javelin anti-tank guided missiles co-developed by Raytheon and Lockheed Martin, and six Boeing P-8I maritime reconnaissance aircraft for the Indian Navy had been paused. The aircraft package, valued at approximately $3.6 billion, was reportedly in the final stages of negotiation. Unnamed officials cited by Reuters claimed that Defence Minister Rajnath Singh had been preparing to visit Washington to finalise some of these deals, but the trip was cancelled. Sources said the purchases might proceed once India had a clearer view of the evolving trade situation and the broader state of the bilateral relationship, but not in the immediate term. How New Delhi has responded Following the report, India's Ministry of Defence moved quickly to dispute them. In a statement attributed to an official source, the ministry described the stories as 'false and fabricated' and insisted that 'the various cases (deals) of procurement are being processed as per the extant procedures.' The ministry stated that there had been no formal order to pause any of the planned acquisitions, and that negotiations and approvals were continuing according to established protocols. STORY CONTINUES BELOW THIS AD Another official familiar with the matter told Reuters that while there had been 'no forward movement at least for now,' there was also no written directive to suspend the projects. This meant the government retained the option to accelerate progress on the contracts if circumstances shifted. Why this US-India defence deal matters The systems at the centre of the controversy hold substantial strategic value for India's military modernisation. The Stryker infantry combat vehicle is a highly mobile, armoured platform designed for rapid deployment in various operational environments. The Javelin missile system, meanwhile, is a precision-guided, man-portable anti-tank weapon that has been battle-tested in multiple theatres. Both platforms were earmarked for potential joint production in India, aligning with New Delhi's drive to expand domestic defence manufacturing under the 'Make in India' initiative. The P-8I Poseidon aircraft, already in service with the Indian Navy, is a multi-role maritime patrol and anti-submarine warfare platform. The proposed purchase of six additional units, along with associated support systems, would significantly expand India's maritime surveillance and reconnaissance capabilities in the Indian Ocean and beyond. In February, during Prime Minister Narendra Modi's meeting with Trump at the White House, the two leaders announced their intent to move forward on these acquisitions and co-production agreements. STORY CONTINUES BELOW THIS AD They also signalled plans to finalise a new 10-year framework for the US-India Major Defence Partnership, designed to strengthen cooperation in the 21st century security environment. How India & US have grown closer vis-à-vis defence Over the past two decades, Washington has become one of New Delhi's key defence suppliers, second only to Moscow in total value. This transformation accelerated after the signing of the 2008 civil nuclear agreement, which opened the door to broader strategic engagement. The growth has been substantial: bilateral defence trade has risen from under $1 billion to more than $20 billion. According to US Congress documents accessed by Firstpost, India has acquired a wide range of US-origin platforms across air, sea, and land domains, including: Air systems: 28 AH-64 Apache attack helicopters (25 delivered), 1,774 AGM-114 Hellfire anti-tank missiles (1,454 delivered), 600 WGU-59 air-to-surface rockets, 245 Stinger portable surface-to-air missiles, 15 CH-47 Chinook transport helicopters, 13 C-130J Super Hercules transport aircraft, 11 C-17 Globemaster III heavy transport aircraft, 12 APG-78 Longbow fire-control radars, two MQ-9A Reaper UAVs (leased in 2020), and various precision-guided munitions. Naval platforms: 1 Austin-class amphibious transport dock, 24 MH-60R Seahawk naval helicopters (12 delivered), 12 P-8I Poseidon maritime patrol aircraft, 78 MK 54 lightweight anti-submarine torpedoes (62 delivered), 6 Sea King ASW helicopters, 63 Harpoon anti-ship missiles, and 18 naval gas turbines. STORY CONTINUES BELOW THIS AD Land systems: 12 Firefinder counter-battery radars, 145 M-777 155 mm howitzers, 1,400 M982 Excalibur precision artillery shells, and 145,400 SIG Sauer SIG716 assault rifles. An Apache helicopter flies as Nato holds training exercise 'Immediate Response' drills with host nations at Krivolak army base, North Macedonia, June 2, 2025. File Image/Reuters Beyond procurement, the India-US defence relationship is anchored by multiple dialogue mechanisms and joint initiatives. The Defence Policy Group (DPG), co-chaired by the Indian Defence Secretary and the US Under Secretary of Defense (Policy), provides a structured forum for reviewing all aspects of bilateral defence cooperation. The most recent DPG meeting took place in Washington DC in May 2023. Other regular engagements include the Defence Production and Procurement Group (DPPG), the Joint Technology Group (JTG), the bilateral Maritime Security Dialogue, the Industrial Security Summit, and the Defence Trade and Technology Initiative (DTTI). Operationally, the two militaries conduct regular joint exercises across all domains, share intelligence, and increasingly cooperate on maritime security. Since 2022, US Maritime Sealift Command vessels have made multiple port calls to Indian shipyards for repair and allied services under commercial arrangements. STORY CONTINUES BELOW THIS AD How India has diversified its defence portfolio India remains the world's second-largest arms importer, according to the Stockholm International Peace Research Institute (SIPRI). For decades, Russia dominated as New Delhi's primary arms supplier, but its share of the market has been eroding. Several factors have contributed to this change: Moscow's defence industry has been under pressure to meet its own operational needs during the war in Ukraine; Western sanctions have complicated delivery schedules; and the performance of certain Russian systems in combat has raised questions. These dynamics have prompted India to diversify its sources, turning increasingly to the United States, France, and Israel for advanced capabilities. Nonetheless, the structural dependence on Russian-origin platforms — particularly in areas like air defence, armoured vehicles, and legacy aircraft — ensures continued cooperation. In recent months, Russian officials have sought to market new systems to India, including the S-500 long-range surface-to-air missile system. However, Indian officials have indicated there is no current requirement for such acquisitions. How Trump has shifted his tone towards India Energy trade remains a key variable in the India-Russia-US triangle. Since the start of the Ukraine conflict, India has expanded its imports of discounted Russian crude, arguing that it is acting in the national interest to secure affordable energy. While New Delhi has signalled a willingness to reduce these imports if equivalent terms can be secured elsewhere, including from US suppliers, this has been complicated by global market dynamics. STORY CONTINUES BELOW THIS AD According to Indian sources, the price advantage of Russian oil has diminished, with discounts now at their lowest level since 2022. Nonetheless, the perception that India is maintaining a lifeline for Russian exports has been a persistent irritant in Washington, particularly under Trump. The tariff dispute is the latest in a series of irritants affecting India-US ties. Earlier in the year, Trump claimed that his administration had brokered a ceasefire between India and Pakistan after a four-day confrontation between the two nuclear-armed neighbours in May — a claim repeatedly rejected by New Delhi. The US President also hosted Pakistan's army chief at the White House shortly after the incident, adding to Indian concerns. Despite these political frictions, the underlying defence and security cooperation remains strong, driven largely by shared strategic interests in countering China's influence in the Indo-Pacific. Also Watch: Based on official statements from India's Ministry of Defence, there is no confirmed suspension of US arms deals. STORY CONTINUES BELOW THIS AD While some procurement timelines may have slowed amid the tariff dispute, the absence of a formal pause order suggests the projects remain in play. With inputs from agencies

India Pauses Plans to Buy U.S. Arms after Trump's Tariffs
India Pauses Plans to Buy U.S. Arms after Trump's Tariffs

Yomiuri Shimbun

time3 days ago

  • Business
  • Yomiuri Shimbun

India Pauses Plans to Buy U.S. Arms after Trump's Tariffs

NEW DELHI, Aug 8 (Reuters) – 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 canceled, 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 defense 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 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-canceled 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. RUSSIAN RELATIONS India's deepening security relationship with the U.S., which is fueled by their shared strategic rivalry with China, was heralded by many U.S. analysts as one of the key areas of foreign-policy progress in the first Trump administration. Delhi is the world's second-largest arms importer and Russia has traditionally been its top supplier. India has in recent years however, shifted to importing from Western powers like France, Israel and the U.S., according to the Stockholm International Peace Research Institute think-tank. The shift in suppliers was driven partly by constraints on Russia's ability to export arms, which it is utilizing heavily in its invasion of Ukraine. Some Russian weapons have also performed poorly in the battlefield, according to Western analysts. The broader U.S.-India defense partnership, which includes intelligence sharing and joint military exercises, continues without hiccups, one of the Indian officials said. India also remains open to scaling back on oil imports from Russia and is open to making deals elsewhere, including the U.S., if it can get similar prices, according to two other Indian sources. Trump's threats and rising anti-U.S. nationalism in India have 'made it politically difficult for Modi to make the shift from Russia to the U.S.,' one of the people said. Nonetheless, discounts on the landing cost of Russian oil have shrunk to the lowest since 2022. India's petroleum ministry did not immediately respond to a request for comment. While the rupture in U.S.-India ties was abrupt, there have been strains in the relationship. Delhi has repeatedly rebutted Trump's claim that the U.S. brokered a ceasefire between India and Pakistan after four days of fighting between the nuclear-armed neighbors in May. Trump also hosted Pakistan's army chief at the White House in the weeks following the conflict. In recent months, Moscow has been actively pitching Delhi on buying new defense technologies like its S-500 surface-to-air missile system, according to one of the Indian officials, as well as a Russian source familiar with the talks. India currently does not see a need for new arms purchases from Moscow, two Indian officials said. But Delhi is unlikely to wean itself off Russian weapons entirely as the decades-long partnership between the two powers means Indian military systems will continue to require Moscow's support, one of the officials said. The Russian embassy in Delhi did not immediately respond to a request for comment.

Reports on India halting US def deals talks false: Govt
Reports on India halting US def deals talks false: Govt

Hans India

time3 days ago

  • Business
  • Hans India

Reports on India halting US def deals talks false: Govt

New Delhi: The Centre has put on hold its plans to procure new US 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, reports news agency Reuters. Trump has said there will be no trade negotiations with India until a dispute over tariffs is resolved, following his administration's decision to double tariffs on Indian imports. Later, The Ministry of Defence dismissed media reports claiming that India has paused discussions on defence purchases from the United States 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 August 6 imposed an additional 25 per cent 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 per cent - among the highest of any US 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." India's defence ministry and the Pentagon did not respond to Reuters' questions. 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 have been paused due to the tariffs. Trump and 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. India's deepening security relationship with the US, which is fuelled by their shared strategic rivalry with China, was heralded by many US analysts as one of the key areas of foreign-policy progress in the first Trump administration. India also remains open to scaling back on oil imports from Russia and is open to making deals elsewhere, including the US, if it can get similar prices, according to two other Indian sources.

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