India Not Planning To Pause US Arms Purchase Amid Tariff Tensions: Report

India is not planning to pause the purchase of US military equipment amid the ongoing tariff tensions between the two countries, according to reports on Friday.

Defence ministry sources, who spoke to CNBC TV-18, said there is no plan to cancel the purchase of American arms and weapon. The report came shortly after news agency Reuters, citing persons privy to the matter, said India has paused the talks around on US arms purchase.

The developments could not be independently confirmed by the time the preliminary reports emerged.

Ties between New Delhi and Washington have plunged to their lowest level in recent decades as US President Donald Trump has sharpened his rhetoric against India, calling it a "tariff king" and accusing the country of profiteering from the Russia-Ukraine war.

Trump levied so-called reciprocal tariffs of 25% on Indian imports from Aug. 7, and doubled down with an additional 25% tariff which will come into effect from Aug. 27. This takes the cumulative tariffs on India to 50%.

"India is not only buying massive amounts of Russian oil, but they are also then, for much of the oil purchased, selling it on the open market for big profits," Trump said earlier this week.

The US president's remarks drew an official response from India, which pointed out that New Delhi's purchase of Russian crude was "encouraged" by the US after the commencement of Ukraine war to maintain stability in the global market.

India also countered the US by pointing out that the country, along with the European Union, has been indulging in trade with Russia itself. "...it is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion," the Ministry of External Affairs said.

Strategic Realignment?

Economic thank tank GTRI believes that Trump's 50% tariffs on India may push New Delhi to deepen alliances with Russia and China, which are at geopolitical loggerheads with Washington.

On Wednesday, it was announced that Indian Prime Minister Narendra Modi would be visiting China on Aug. 31, making his first visit to the neighbouring country in the last seven years. The Sino-Indian ties had deteriorated following the clash between Chinese and Indian soldiers in Galwan Valley in June 2020.

Subsequently, on Thursday, Russian news agencies reported President Vladimir Putin will be visiting India later this year. Indian National Security Advisor Ajit Doval, who is an official visit to Moscow, also met Putin, the Kremlin said in an official statement.