Editor’s Note: This story has been updated to include a comment from India’s Ministry of Defence.
India has reportedly paused plans to procure U.S. defense equipment, including arms and aircraft from Lockheed Martin LMT, Boeing Co. BA and General Dynamics GD, as the diplomatic fallout from President Donald Trump's tariffs strains bilateral ties.
US-India Defense Talks Reportedly Stall
India has delayed its defense procurement plans following the imposition of steep tariffs by Trump, reported Reuters, citing three Indian officials.
The move has affected talks on purchasing U.S. weapons, including combat vehicles and reconnaissance aircraft. India was set to send Defense Minister Rajnath Singh to Washington to finalize deals on items such as Stryker combat vehicles, Javelin missiles, and Boeing P-8I reconnaissance aircraft.
However, those talks have stalled, the report said, citing the sources.
According to the report, the negotiations indicated that the defense purchases could still proceed once there is clarity on tariffs and the direction of bilateral ties, but "not as soon as they were expected."
The cancellation of Singh's trip is the first concrete sign of India's displeasure over the 50% tariff burden imposed on its exports.
An Indian defence ministry spokesperson told Benzinga that reports of New Delhi pausing defence purchase talks with the U.S. are "false and fabricated." The ministry spokesperson said, "It is clarified that the various cases of procurement are being progressed as per the extant procedures."
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Trump's Tariffs And Their Impact On Bilateral Relations
The tariffs, which include a 25% additional duty imposed on Indian goods as punishment for India's oil imports from Russia, have escalated tensions between the U.S. and India.
India has called the tariffs unfair and criticized Washington's selective stance on trading with Russia. Despite this, India has not formally suspended procurement talks but is waiting for a clearer understanding of the future of U.S.-India relations before proceeding.
An Indian government source remarked that they are being unfairly targeted, while the West continues to trade with Russia when it suits their interests.
India's shift in defense procurement from Russia to Western suppliers, including the U.S., has been in response to both Russia's ongoing conflict in Ukraine and its inability to meet demand for modern weapons.
Modi Defends Farmers Amid Trade Tensions
Meanwhile, on Thursday, Indian Prime Minister Narendra Modi doubled down on his commitment to protecting the interests of Indian farmers. Speaking at the MS Swaminathan Centenary International Conference, Modi said that “the interest of our farmers is our top priority” and that he would “never compromise” on their welfare.
Potential BRICS Coordination In The Future
The broader U.S.-India relationship remains strained, but India continues to explore alternatives, including strengthening ties with other BRICS nations.
Brazilian President Lula da Silva on Wednesday suggested that BRICS could work together to counter U.S. trade pressures.
Price Action: Lockheed Martin fell 1.19% to $425.63 on Friday, while Boeing gained 0.79% to $229.12 and General Dynamics rose 0.45% to $314.13 during the same session, according to Benzinga Pro.
Benzinga's Edge Stock Rankings indicate that LMT has maintained a negative price trend across the short, medium and long term. Additional performance insights are available here.
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