India Put On Hold Defence Deal With US Amid Tariff Row? Govt Says...

The White House on Wednesday issued an order imposing an additional 25 percent in tariffs on Indian goods, raising the total levy to 50 percent. Amid the ongoing tariff imposition, reports claimed that Indian paused defence deals with America; however, the MoD refuted the claims.

Source: Zee Media Bureau

The government of India on Friday refuted media reports of the suspension of defence deals with the United States amid the tariff row. 

According to ANI, Defence officials clarified that the news reports on India pausing the talks related to defence purchases with the US are false and fabricated.

"It is clarified that the various cases of procurement are being progressed as per the extant procedures," the Defence Ministry officials added. 

Earlier, Reuters had reported, citing three Indian officials, that New Delhi is pulling back on plans to procure US weapons and aircraft. They added that Defence Minister Rajnath Singh’s scheduled visit to the US in the coming weeks, expected to include an official announcement on parts of the deal, has been cancelled.

India-US Tariff Row

The White House on Wednesday issued an order imposing an additional 25 percent in tariffs on Indian goods, raising the total levy to 50 percent. According to ANI, the administration had cited national security and foreign policy concerns, pointing specifically to New Delhi's ongoing imports of Russian oil.

The Executive Order claimed that these imports, whether direct or via intermediaries, present an "unusual and extraordinary threat" to America and justify emergency economic measures.

According to US officials, the initial 25 percent tariff came into effect on 7 August. The additional levy will take effect in 21 days and apply to all Indian goods entering US ports, with exceptions for items already in transit and certain exempt categories.

On the other hand, following the directive of his increased tariffs, Trump has ruled out any trade negotiations with India until the dispute over tariffs is resolved.

On the other hand, tariff orders on India drew criticism from within the country as House Foreign Affairs Committee Dems warned that Trump's actions risk the carefully developed US-India relationship.

In a post on X, House Foreign Affairs Committee Dems said, "RM Gregory Meeks: Trump's latest tariff tantrum risks years of careful work to build a stronger US-India partnership. We have deep strategic, economic, and people-to-people ties. Concerns should be addressed in a mutually respectful way consistent with our democratic values." 

As the US continues to pressure India over its trade relations with Moscow, as per IANS, Russian President Vladimir Putin said that he hopes for a presidential summit with Trump as early as next week, with the United Arab Emirates (UAE) emerging as a potential venue.

(with agencies' inputs)