India Halts Procurement of P-8I Maritime Aircraft from U.S. after Trump Imposes 50% Tariffs on India
India has officially paused the procurement of six additional Boeing P-8I maritime patrol aircraft as of August 2025. The decision comes after nearly 50% price increase, driven in part by a 25% U.S. tariff on Indian exports. The move comes amid a broader review of high-value defense acquisitions, as the country grapples with rising costs, evolving geopolitical dynamics, and a renewed focus on strategic autonomy. As per reports, the Ministry of Defence (MoD) had previously signaled willingness to proceed with the acquisition despite escalating costs, the recent announcement of a 25% tariff on Indian exports by the United States, effective August 7, 2025, has triggered a strategic reassessment. The proposed deal has not been definitively canceled but is under review in light of the altered cost dynamics and broader policy considerations.
India’s initial P-8I contract was signed in 2009 for eight aircraft at a cost of $2.2 billion, followed by a second order of four more in 2016 for over $1 billion. The Navy has consistently advocated for a total fleet of 18 aircraft to ensure full-spectrum monitoring of the IOR, especially amid increased Chinese naval activity involving submarines and vessels operating under the guise of survey or anti-piracy missions.
#indiannavy #indianarmy #indiaustariff #usindiatariff #indiaustrade #usindiatradedeal #republictv
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