'Status quo is maintained': MoD dismisses reports of India postponing defence deals with US amid tariff tensions
Sources also said that there was no formal confirmation on Defence Minister Rajnath Singh's scheduled US visit.
- Aug 8, 2025,
- Updated Aug 8, 2025 5:54 PM IST
The Ministry of Defence (MoD) on Friday dismissed media reports suggesting that India has postponed its plans to purchase new weapons and aircraft from the US due to tensions over 50 per cent tariffs imposed by President Donald Trump.
As per sources within the Defence Ministry, defence deals with the US are 'still on the table' and the status quo on defence procurement is maintained.
No decision has been taken on cancelling the India-US defence deals yet. Sources also said that there was no formal confirmation on Defence Minister Rajnath Singh's scheduled US visit. Furthermore, sources mentioned that supplies from the US would continue as per existing contracts and talks on follow-up orders will continue.
Media reports suggesting that India reportedly postponed plans to purchase new weapons and aircraft from the United States amid rising tensions over tariffs started doing the rounds. According to sources speaking to Reuters, the Indian government has not officially confirmed these reports.
The decision marks a potential strain in defence ties, as the purchases were to be announced during Defence Minister Rajnath Singh's now-cancelled visit to Washington.
The halted deal, valued at approximately $3.6 billion, included the acquisition of Stryker combat vehicles from General Dynamics, Javelin anti-tank missiles from Raytheon and Lockheed Martin, and six Boeing P8I reconnaissance aircraft for the Indian Navy.
Reuters highlighted that while India has historically been one of Russia's significant defence customers, it has increasingly turned to suppliers such as France, Israel, and the US in recent years.
Despite Moscow's attempts to retain its market share by offering new defence technologies, officials have stated that "no new purchases from Russia are planned for now." The current diplomatic strain underscores the balancing act India faces in its international relations.
President Trump's imposition of an additional 25% tariff on goods related to India’s Russian oil imports has intensified these tensions. With a total duty now at 50%, this tariff places India among the most heavily taxed US trading partners. Officials told Reuters that defence purchases may resume once there is "clarity on trade policy and the direction of bilateral ties."
India has expressed that it feels "unfairly targeted," especially as the US and European nations continue their trade with Moscow when it benefits them. The broader US-India defence relationship, however, "remains intact in areas like intelligence sharing and joint military exercises," as stated by one official.
Reuters, quoting two officials, confirmed that "the visit has now been cancelled," signifying a pause in advancing defence negotiations. For now, there is "no forward movement" in defence acquisition discussions.
The Ministry of Defence (MoD) on Friday dismissed media reports suggesting that India has postponed its plans to purchase new weapons and aircraft from the US due to tensions over 50 per cent tariffs imposed by President Donald Trump.
As per sources within the Defence Ministry, defence deals with the US are 'still on the table' and the status quo on defence procurement is maintained.
No decision has been taken on cancelling the India-US defence deals yet. Sources also said that there was no formal confirmation on Defence Minister Rajnath Singh's scheduled US visit. Furthermore, sources mentioned that supplies from the US would continue as per existing contracts and talks on follow-up orders will continue.
Media reports suggesting that India reportedly postponed plans to purchase new weapons and aircraft from the United States amid rising tensions over tariffs started doing the rounds. According to sources speaking to Reuters, the Indian government has not officially confirmed these reports.
The decision marks a potential strain in defence ties, as the purchases were to be announced during Defence Minister Rajnath Singh's now-cancelled visit to Washington.
The halted deal, valued at approximately $3.6 billion, included the acquisition of Stryker combat vehicles from General Dynamics, Javelin anti-tank missiles from Raytheon and Lockheed Martin, and six Boeing P8I reconnaissance aircraft for the Indian Navy.
Reuters highlighted that while India has historically been one of Russia's significant defence customers, it has increasingly turned to suppliers such as France, Israel, and the US in recent years.
Despite Moscow's attempts to retain its market share by offering new defence technologies, officials have stated that "no new purchases from Russia are planned for now." The current diplomatic strain underscores the balancing act India faces in its international relations.
President Trump's imposition of an additional 25% tariff on goods related to India’s Russian oil imports has intensified these tensions. With a total duty now at 50%, this tariff places India among the most heavily taxed US trading partners. Officials told Reuters that defence purchases may resume once there is "clarity on trade policy and the direction of bilateral ties."
India has expressed that it feels "unfairly targeted," especially as the US and European nations continue their trade with Moscow when it benefits them. The broader US-India defence relationship, however, "remains intact in areas like intelligence sharing and joint military exercises," as stated by one official.
Reuters, quoting two officials, confirmed that "the visit has now been cancelled," signifying a pause in advancing defence negotiations. For now, there is "no forward movement" in defence acquisition discussions.