India Drops F-35 Jet Deal After Trump’s Tariff Blow: Report

In a significant fallout from the escalating trade tensions with the United States, India is reportedly dropping its plans to purchase F-35 stealth fighter jets after President Donald Trump announced a sweeping 25% tariff on Indian exports. According to a Bloomberg report citing officials familiar with the matter, while New Delhi is not considering immediate retaliation, it is now unlikely to pursue major US defense acquisitions.

The report claims that India has conveyed to the United States its lack of interest in the F-35 deal, a proposal Trump had personally pitched to Prime Minister Narendra Modi during his US visit in February. Instead, the Modi government is said to be more focused on partnerships that involve jointly designing and manufacturing defense equipment domestically.

Despite the setback on the defense front, India appears keen to keep bilateral trade talks on track and is weighing options to placate the White House. Rather than imposing retaliatory tariffs, New Delhi is reportedly considering increasing its imports of other US goods, such as natural gas, communication equipment, and gold. This strategy could help narrow India’s trade surplus with the US over the next few years, addressing a key point of friction for the Trump administration. The report explicitly states that no new defense purchases are being planned.

The move comes after Trump announced that a 25% tariff, plus an additional penalty, would be imposed on Indian goods starting August 1. He justified the decision by citing India’s high tariffs, “obnoxious non-monetary Trade Barriers,” and its continued energy and military ties with Russia. In a series of sharp statements, Trump called India and Russia “dead economies” and said he didn’t care if they went “down together.” He has consistently criticized the trade imbalance and what he views as unfair trade practices by New Delhi.