India Halts US Arms Purchases Amid Tariff Dispute

Published on 8.8.25

  India has put its plans to procure new US weapons and aircraft on hold due to the imposition of tariffs by President Donald Trump. The decision comes after India was given three weeks to find alternative suppliers for Russian oil or face painful tariffs. Indian Finance Minister K.N. Balagopal has sought assurances from the government on how it will stand up to the US's prohibitive tariffs, which could cause Kerala's economy to regress into the COVID-19 era. Moody's Ratings warned that Trump's steep 50% tariffs on Indian imports could severely undermine India's manufacturing ambitions and slow economic growth. The US President has ruled out trade negotiations with India until the issue of tariffs is resolved, citing national security concerns.

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