India Halts Boeing P-8I Jet Procurement After 50% Price Surge Amid US Tariffs

India has paused its $3.6 billion deal to procure six additional Boeing P-8I maritime patrol aircraft following a nearly 50% cost increase, largely driven by a 25% tariff imposed by U.S. President Donald Trump on Indian exports. Originally approved in 2021 for $2.42 billion, the deal's price surge is attributed to supply chain disruptions, inflation, and the tariffs, prompting the Indian Ministry of Defence to conduct a strategic reassessment amid evolving geopolitical dynamics and a focus on strategic autonomy. The Indian Navy, which currently operates 12 P-8I aircraft, had sought to expand its fleet to 18 to strengthen maritime surveillance in the Indian Ocean Region, countering increased Chinese naval activity. India has requested a significant price reduction from the U.S. in ongoing negotiations, emphasizing the steep rise in costs as a major concern. Despite the hold, the deal has not been canceled outright, with possibilities for revival under revised pricing through the U.S. Foreign Military Sales program. Boeing’s operations in India, which support thousands of workers and contribute substantially to the economy, may be impacted if the acquisition remains suspended.