Trump Tariffs: Rajnath’s US visit in abeyance; slowdown in defence deal negotiations with the US
The cost of procuring six additional P-8I maritime patrol aircraft for the Indian Navy has soared to $2.42 billion, 49 per cent higher than the 2021 understanding with the US Department. Negotiations with Boeing have dragged on for a year.
| Photo Credit:
PTI
Defence Minister Rajnath Singh’s planned visit to the US next month is reportedly in abeyance, signalling a shift in the mood within the Indian security establishment following President Donald Trump’s imposition of a 50 per cent tariff threat on India. This delay in the Minister’s visit coincides with a slowdown in negotiations on some ongoing key defence deals.
Though not officially announced, Singh was weighing an official tour to Washington in September to discuss defence procurement agreements and co-production in India partnerships.
The visit was contemplated to prepare grounds for an announcement of some military deals at the time of Trump’s likely visit to New Delhi to attend the Quad Summit later this year, government sources said.
But, it has now been kept in abeyance due to the growing strain in the bilateral relations between the two countries, sources said.
“This is not the most opportune time for such engagements,” an official said.
Talks continue
However, Ministry of Defence sources underlined that India has not yet “paused” the talks related to defence purchases with the US. “It is clarified that the various cases of procurement are being progressed as per the extant procedures,” they said.
The simultaneous slowdown in negotiations between the two countries is on major ongoing defence deals, including six additional P-8I maritime patrol aircraft, Stryker armoured vehicles and Javelin missiles. Sources said till the dust settles on the tariff turmoil, it would be tough to carry out defence talks because the new levies will impact the global defence manufacturing supply chain.
Russia’s concerns
Adding to the complexities, Russia recently expressed concern over what it sees as US pressure on India to purchase F-35 stealth aircraft. Notably, National Security Advisor Ajit Doval met with Russian President Vladimir Putin a day after the U.S. imposed an additional 25 per cent tariff on India. Russia had also offered its SU-57 fifth-generation aircraft, along with ToT and production in India.
Besides the ongoing tensions, there are pricing issues, too, with these deals. For instance, the price for procuring six additional P-8I maritime patrol aircraft for the Indian Navy at a cost of $2.42 billion has witnessed a steep jump from the original understanding reached with the US Department in 2021.
Now, the cost of the deal with Boeing is 49 per cent higher, and the negotiations have been going on for a year, with the two governments wanting to close it at the time of Trump’s likely tour of India.
But this may get delayed also because there is an uncertainty around the visit of the US president to New Delhi.
Another crucial defence deal regarding Stryker armoured vehicle production in India is facing opposition from the domestic industry. Indian private players, including L&T, TASL, Bharat Forge and Mahindra, already have the capability of delivering a similar platform, the industry has maintained. “But New Delhi, possibly out of diplomatic reasons, is continuing to engage the Trump administration on this issue,” said an industry source.
The other contractual engagement is for the co-production of GE F414 engines for the LCA Mk2 fighter and AMCA aircraft here. This, too, is in the price negotiation stage.
However, sources said, this is an evolving situation and in the event of “normalisation” of India-US relations, the defence dialogue can resume.
Published on August 8, 2025
