India Denies Pause on U.S. Defense Purchases Amid Tariff Tensions

The Ministry of Defence has dismissed claims that India halted defense purchase talks with the U.S. due to tariff hikes. A senior official confirmed that procurement processes continue unchanged. This clarification follows U.S. tariff increases on Indian goods, causing trade tensions amid India's ongoing Russian oil imports.


Devdiscourse News Desk | Updated: 08-08-2025 19:13 IST | Created: 08-08-2025 19:13 IST
India Denies Pause on U.S. Defense Purchases Amid Tariff Tensions
Representative Image. Image Credit: ANI
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The Ministry of Defence strongly rebuffed recent reports on Friday that suggested India had halted discussions concerning defense acquisitions from the United States. These reports were labeled 'false and fabricated,' as per a statement from a senior ministry official. The official assured that all active procurement cases are progressing according to established procedures.

This refutation comes after media reports indicated India paused purchasing U.S.-made defense systems as a reaction to President Donald Trump's announcement of increased tariffs on Indian products by 50 percent. The contentious tariffs were cited as the first significant retaliatory step from India.

The White House recently issued an Executive Order imposing an additional 25 percentage points on tariffs against Indian goods, elevating the total to 50 percent. The U.S. justified these tariffs, citing concerns over national security and foreign policy, pointing out India's continued Russian oil imports.

These additional tariffs are slated to effectuate 21 days following the executive order, building on an existing 25 percent tariff before the deadline of August 1. Concurrently, President Trump announced on Thursday that no trade negotiations would proceed until the tariff dispute is resolved.

A U.S. State Department spokesperson maintained that despite the tension, India remains a 'strategic partner,' with both nations engaging in 'full and frank dialogue.' The spokesperson also addressed speculations about a potential pushback from China and other BRICS nations, affirming that dialogues with India will progress.

(With inputs from agencies.)

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