Washington imposes 25% tariffs, India postpones purchase of P-8 Poseidon.

India has temporarily suspended the purchase of six P-8I Poseidon aircraft from the US, after Washington imposed a 25% tariff, causing costs to skyrocket and bilateral tensions to escalate.

The Indian Ministry of Defence has decided to suspend negotiations for the purchase of six Boeing P-8I Poseidon anti-submarine patrol aircraft. The main reason is the 25% tariff imposed by the US on goods imported from India, which has increased the cost of purchasing the aircraft by more than 50%. This is a direct impact of the tough trade policies initiated by the administration of President Donald Trump.

This tariff order, implemented by the US from August 6, 2025, aims to pressure India to reduce its oil imports from Russia and decrease its defense procurement activities related to Russia. Amidst increasingly strained relations between Washington and Delhi, the decision to temporarily suspend the P-8I aircraft purchase contract can be seen as India's response to pressure from the US.

The contract to purchase six P-8I Poseidon aircraft, initially valued at $2.42 billion, was approved by the US Defense Security Cooperation Agency in 2021. However, due to the impact of sharp inflation and new tariffs, the cost of the contract has increased by nearly 50%, to approximately $3.6 billion, prompting the Indian government to reconsider.

Previously, the Indian Navy operated a total of 12 P-8I aircraft, the most valuable military asset the country had ever purchased from the United States. These aircraft play a crucial role in maritime patrol and anti-submarine warfare, especially in the context of the increasingly strategic and volatile Indo-Pacific region.

Notably, India signed a contract to purchase eight P-8I aircraft in 2009, worth a total of $2.2 billion. In 2016, they ordered four more for $1 billion. These aircraft replaced the Soviet Tu-142M fleet, which served in the Indian Naval Air Force from 1988 to 2017.

However, defense procurement from the US remains limited. One of the main reasons is that the US is considered an unreliable supplier, and it imposes strict controls on how military equipment is used. This has prevented India from seriously considering purchasing the fifth-generation F-35 fighter jet from the US.

Instead, India tends to opt for Russia's Su-57 fighter jet, which the Russian Ministry of Defence has granted full access to sensitive technical source code. The level of autonomy and trust that India and Russia have for each other is distinctly different from the relationship between India and the United States.

Meanwhile, although Russia once supplied India with advanced long-range anti-submarine warfare aircraft during the Soviet era, India currently lacks an aircraft comparable to the P-8I's capabilities. This forces the Indian Navy to increase the operational capacity and availability of its existing P-8I aircraft to compensate for the shortage.

Furthermore, the possibility of jointly developing a replacement for the P-8I with Russia remains open, but it is not easy and requires a long time and significant resources. The failure to secure a new contract with Boeing could become a major setback for the American aerospace industry.

Furthermore, disrupting the defense and strategic relationship between the US and India could backfire, becoming a serious obstacle to the US Indo-Pacific strategy, which views India as a key partner in containing China's influence.

Amid escalating tensions with the US, Indian Prime Minister Narendra Modi has announced plans to make his first visit to China in seven years. Strengthening ties with the giant neighbor could significantly harm the interests of the US and its Western allies in the region.

In summary, India's decision to temporarily halt the purchase of P-8I aircraft not only reflects the direct impact of US tariff policies, but also demonstrates India's strategy of diversifying its defense and economic partners amidst increasingly complex and fiercely competitive geopolitical landscape in the Indo-Pacific region.

Military Watch (See source link)

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