India has reportedly withdrawn from a potential deal to acquire US-made F-35 stealth fighter jets following former US President Donald Trump’s announcement of a 25% tariff on Indian exports. According to a Bloomberg report quoting officials familiar with the matter, New Delhi has conveyed to Washington that it is no longer interested in the purchase proposed during Prime Minister Narendra Modi’s visit to the US earlier this year.
The report suggests that India’s decision stems from its desire to avoid dependence on American defence equipment amid escalating trade tensions. Instead, the Modi government is focusing on building a domestic defence manufacturing ecosystem through joint development and local production.
India Eyes Alternative Trade Measures, No Immediate Retaliation
While India has ruled out immediate retaliation to Trump’s surprise tariff announcement, officials quoted in the report claim that New Delhi is exploring ways to ease tensions with Washington. These measures may include increasing imports of US goods such as natural gas, gold, and communication equipment — a move that could help reduce India’s trade surplus with the US over the next three to four years.
Despite Trump’s assertion that the US has done “very little business” with India due to high tariffs and what he called “the most strenuous and obnoxious non-monetary trade barriers,” Indian officials are reportedly keen to keep bilateral trade talks on track.
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Trump also criticized India’s longstanding defence ties with Russia, saying, “They have always bought a vast majority of their military equipment from Russia… All things not good!” He further said, “They can take their dead economies down together, for all I care.”
With no new defence purchases planned and a clear shift in strategy, India appears to be recalibrating its diplomatic and trade engagements while avoiding a direct confrontation with the US.
