Trump’s Tariff Tantrum Backfires: India Halts Multi-Billion Dollar Defence Deals For Stryker, Javelin And Boeing P-8I Aircraft

In a dramatic escalation of trade tensions, the Modi government has reportedly paused negotiations for the co-production of US-made Stryker armoured fighting vehicles (AFVs).

This comes after US President Donald Trump imposed additional 25 per cent tariffs on Indian exports over purchase of Russian oil, taking the total duties to 50 per cent.

According to a Reuters report, India has put on hold its plans to procure new US weapons and aircraft.

Further, Defence Minister Rajnath Singh's trip to US in the coming weeks to announce some of the US arms purchases has also been cancelled.

The report, citing people familiar with the matter, said the defence purchases could go ahead once India had clarity on tariffs and the direction of bilateral ties, but "just not as soon as they were expected to."

The move affects discussions on Stryker vehicles from General Dynamics, Javelin anti-tank missiles, and Boeing P-8I aircraft, with potential deals worth over Rs 45,000 crore now on hold.

Earlier, India had informed the US that it won't be going ahead with a proposed F-35 fighter jet deal.

According to the officials cited in the report, no written instructions were given to pause the purchases, which means that India has the option to quickly reverse course, though there was "no forward movement at least for now."

The Stryker deal, initially announced in February 2025 by Trump and Prime Minister Narendra Modi, aimed at enhancing India's military modernisation, especially along the China border.

This move may also spark a pivot towards self-reliance under the Atmanirbhar Bharat initiative, potentially boosting local firms like Tata, Kalyani Group and Mahindra.

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