India Suspends $3.6B Boeing Defense Deal After U.S. Tariffs

India has paused multiple significant defense procurement deals with the United States, including a $3.6 billion deal for Boeing jets and the purchase of Stryker combat vehicles and Javelin anti-tank missiles, following the imposition of steep tariffs by President Donald Trump. The tariffs, which have raised the total duty on Indian exports to 50%, were imposed as punishment for India's continued purchase of Russian oil, which the U.S. claims funds Russia's invasion of Ukraine. These tariffs have increased costs for U.S. defense contractors, who in turn have passed these expenses onto India, prompting New Delhi to reconsider its defense spending amid inflation, supply chain disruptions, and evolving geopolitical considerations. Indian officials have expressed that the tariffs are unfair and unjustified, emphasizing their need to ensure energy security for their population and highlighting that Western allies continue trade with Moscow when it suits them. Although India is weighing its trade options and remains open to negotiations with the U.S., it has not yet retaliated or given formal instructions to halt purchases, signaling a cautious but firm stance in response to the strained bilateral ties. Concurrently, Air India is moving forward with retrofitting its legacy Boeing 787-8 Dreamliners in the U.S., indicating ongoing collaboration in other areas despite the tariff disputes.