New Trade Tension Between New Delhi and Washington.. India Freezes Plans to Purchase American Weapons in Response to Tariffs

India decided today, Friday, to suspend its plans to purchase new weapons and aircraft from the United States, in a move described as a direct response to the high tariffs recently imposed by Washington, according to Reuters citing Indian officials.

Local media reported that Prime Minister Narendra Modi chaired a government meeting to discuss the implications of these tariffs, which were announced by former U.S. President Donald Trump last July, and include a 25% tax on Indian imports, justifying the decision by the high tariffs imposed by New Delhi, trade barriers, and its economic relations with Russia.

These tariffs came into effect on Thursday, while Trump signed an executive order imposing an additional 25% tariff on Russian oil imports coming from India, which is set to take effect on August 27.

Before the recent escalation, diplomats and officials in New Delhi were counting on the possibility of reaching a settlement regarding the tariffs within the framework of a future trade agreement with the United States, but negotiations between the two sides faced obstacles, the most prominent being Washington's insistence on opening the Indian agricultural market to genetically modified crops, which India rejects on the grounds of protecting farmers and ensuring food safety.

Modi confirmed, following the announcement of the new U.S. measures, that his government would continue to defend the interests of farmers, fishermen, and livestock breeders, emphasizing that trade policies must consider the economic and social security of the country.