India Halts Defense Deal Amid Shock Over Trump’s 25% Tariff Hike

India has condemned the United States’ decision to impose additional tariffs on Indian goods as "unjustified and unfair," according to official remarks by Randhir Jaiswal, spokesperson for the Ministry of External Affairs of India.

“We have already clearly articulated our position on these matters, including the fact that our oil imports are based on market factors and undertaken with the primary goal of ensuring energy security for 1.4 billion Indians,” Jaiswal said, describing Washington’s actions as unjustified, unfair, and unreasonable. His comments were made in a post on social media platform X.

“Such steps by the United States are deeply regrettable, especially as other nations are pursuing similar policies based on national interest,” Jaiswal emphasized. “India will take all necessary measures to protect its interests.”

India Suspends Key Defense Deal Amid Tariff Tensions

Amid growing tensions, India has reportedly suspended its planned purchase of six additional P-8I maritime patrol aircraft for the Indian Navy. The aircraft were meant to supplement an existing fleet of 12 P-8Is already in operation. The suspension stems from an earlier June 2023 approval by India’s Ministry of Defense, which now remains in limbo.

Although no official reason was given, speculation suggests that the move could be linked to either the contract’s high cost or shifting priorities in India’s defense procurement—now possibly impacted by the latest tariff row. The new aircraft were expected to significantly enhance India’s surveillance capabilities across the strategic Indian Ocean region.

Trump Targets India with Steep New Tariffs Over Russian Oil

The Trump administration has imposed an additional 25% tariff on Indian imports in response to India’s continued purchase of Russian crude oil. Combined with existing duties, the total tariff burden on Indian goods heading to the US now stands at 50%.

The executive order signed by President Trump not only targets India but also opens the door for similar penalties on other nations that continue importing Russian oil. The US Department of Commerce has been tasked with assessing the situation and recommending further action.

India's strong reaction and the suspended defense deal signal rising diplomatic and economic friction between Washington and New Delhi as the global fallout from the Russia-Ukraine conflict continues to reshape strategic alliances.