 "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.”
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.
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.
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.
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.
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.
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.
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.
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