Trade war: No F-35 jets from US for India? Govt mulls next steps after 25% tariff shock

NEW DELHI: The government is exploring options to respond to US President Donald Trump’s decision to impose a 25 per cent tariff on Indian goods, but has ruled out any immediate retaliation, Bloomberg reported.

The government is also considering steps to maintain trade relations, including increasing imports from the US, but is not planning any new defence purchases, according to people familiar with the matter cited by Bloomberg.


India has told US officials that it is not interested in acquiring the F-35 stealth fighter jets, despite continued American efforts to expand defence exports to New Delhi, Bloomberg reported. The Modi government is unlikely to approve any major new defence deals with the US in the near future, the report said.

Meanwhile, ministry of external affairs also said on Friday that no formal discussions have been held with the United States regarding the sale of F-35 fighter jets to India.

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Moreover, the Bloomberg report also says that officials in New Delhi were "shocked and disappointed" by Trump’s tariff announcement on Wednesday. However, the government wants to keep trade talks on track and is looking at options to increase purchases from its largest trading partner.

India is also considering expanding imports of natural gas, communication equipment, and gold from the US, the Bloomberg report said. But no defence purchases are being planned.

“Despite considering a boost in purchases of American goods, the Modi government is unlikely to buy additional defense equipments from the US, a key demand from Trump,” Bloomberg quoted officials familiar with the matter as saying.

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India has informed the US that it is not keen to buy the F-35 stealth fighter jets, Bloomberg reported. During PM Modi’s visit to the White House in February, Trump had offered to sell the jets to India. However, Indian officials said the government is more interested in a partnership focused on jointly designing and manufacturing defence equipment in India, according to Bloomberg report.

Trump, in a post on his social media platform Truth Social, announced a 25 per cent tariff on Indian goods starting August 1. He also mentioned a penalty for India’s purchases of Russian military equipment and energy.

"India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any country," Trump said.

"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine — All things not good!" he added.

In another post, Trump said: "I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their Tariffs are too high, among the highest in the World. Likewise, Russia and the USA do almost no business together. Let’s keep it that way, and tell Medvedev, the failed former President of Russia, who thinks he’s still President, to watch his words. He’s entering very dangerous territory!"

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