Modi government rejects high-profile fighter jet deal as it explores softer trade strategies to ease tensions with Washington.
📰 Tariff Tensions Escalate: Trump Targets India
In a surprise move, former US President Donald Trump announced a 25% tariff on Indian exports, sending shockwaves through New Delhi. Indian officials, caught off guard, are now weighing non-retaliatory strategies to stabilize trade ties with Washington.
“The implications of the recent developments are being examined,” Commerce Minister Piyush Goyal told Parliament, amid loud opposition protests.
India’s Measured Response: No Retaliation for Now
Instead of immediate retaliation, India is exploring ways to reduce its trade surplus with the US by:
- Increasing imports of natural gas
- Buying more communication equipment
- Boosting gold imports
The government is not planning any defense-related purchases, sources confirmed.
✈️ India Rejects F-35 Fighter Jet Deal
Despite past offers from Trump, India has formally declined to purchase US-made F-35 stealth jets, citing preference for:
- Domestic defense manufacturing
- Joint development agreements over high-cost imports
During PM Modi’s earlier visit to the White House, the F-35 was offered as a key deal, but has since been quietly shelved.
💬 What Officials Are Saying
- Trump criticized India’s tariffs as “strenuous and obnoxious”
- He later called India and Russia “dead economies” on Truth Social
- US Treasury Secretary Scott Bessent accused India of delaying trade talks
- India insists it remains committed to a mutually beneficial trade deal
📉 Market Reaction: Limited But Noticeable
India’s markets reflected mild concern:
- Rupee dropped 0.4% against the dollar before stabilizing
- Nifty 50 Index declined by 0.5% during early trading hours
🤝 Can Trade Talks Survive the Strain?
While Trump’s comments have rattled New Delhi, Indian trade experts remain cautious:
“Trump being Trump, we can’t be sure. This could be a negotiating ploy,” said trade expert Abhijit Das.
Meanwhile, both countries had previously agreed to finalize a trade deal by fall 2025, with another round of US-India talks expected soon.
🧭 The Bigger Picture
India faces a strategic challenge:
- It can’t promise massive energy imports
- It’s reluctant to increase defense spending
- It wants to protect farmers and small businesses
Analysts suggest India will need to be “a little more accommodating” in future negotiations to avoid long-term friction.
🕒 Note:
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Also Read : Trump Revises Tariffs Ahead of Trade Deadline: India Stays at 25%, Pakistan Gets a Rate Cut
