India-US Defence ties must be kept away from the tariff battle ETv Bharat 13 Aug 2025
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India-US Defence ties must be kept away from the tariff battle ETv Bharat 13 Aug 2025
President trump recently imposed 50% tariffs on India citing multiple reasons including adverse balance of payments, high tariffs and procuring Russian oil, though it is also possible due to Modi claiming that Trump had no role in the ceasefire announced during Operation Sindoor. Relations between the two nations is at an all-time low. Within India, all political parties have endorsed the government’s stand of not relenting to Trump’s ‘economic blackmail.’
India has thus far displayed maturity in its response. Apart from terming the sanctions as ‘unjust,’ PM Modi has mentioned that India will not compromise on its national interests. He stated in a speech, ‘India will never compromise on the interests of its farmers, livestock-rearers and fisherfolk.’ This message conveyed India’s intent to stand firm.
As compared to other leaders, PM Modi neither requested Trump for a reassessment nor did he rush to Washington for talks. thereby assuaging Trump’s ego. India, on the other hand, enhanced its engagements with BRICS nations as also Russia and China. This angered Trump who paused further trade talks. He mentioned that there would be no talks ‘until we get it resolved.’
For India, the US, apart from being a major trade partner is also an important defence ally and supplier. Both the nations are members of the QUAD, the leadership summit of which is due to be held in India later this year. It may not take place as the current environment continues to be counterproductive for any such gathering.
The two nations have also inked a collection of defence agreements. These include the General Security of Military Information Agreement, which deals with sharing of classified military information, Logistics Exchange Memorandum of Agreement, which enables access to each other’s military facilities for logistics support, Communications Compatibility and Security Agreement, dealing with secure communication between the two militaries and Basic Exchange and Cooperation Agreement, which is geospatial information sharing. These indicate growing trust and understanding between the two nations.
There is the INDUS-X (US-India Defence Technology and Trade Initiative) focussing on collaboration between defence industries, academia and research institutes as also the Initiative on Critical and Emerging Technologies, run by the National Security Councils of both nations, involving enhanced collaboration in high technology areas.
India is also considered a Major Defence Partner and granted Strategic Trade Authorization-1 status, benefitting defence trade. Currently the two countries are also exploring a Reciprocal Defence Procurement Agreement enabling alignment of procurement systems.
India conducts maximum joint exercises with the US, involving all the three services. Most notable are the Malabar naval exercises and Yudh Abhyas. A 10-year defence agreement to expand defence and strategic ties is also on the cards. The strengthening of defence ties is based on the acceptance of both countries that they need to work together to secure the Indo-Pacific and contain China, which remains a concern for both nations.
There are also major ongoing defence deals with the US. These include the GE F404 engines for Tejas Mark 1 fighter aircraft, the supply of which has commenced after a delay, impacting India’s air power. Talks are in progress for the co-production of GE F414 engines for the Tejas Mark 2 and the navy’s twin engine deck-based fighter.
In addition is the USD 3.5 billion deal for procurement of 31 General Atomics MQ-9B Sea Guardian/Predator unmanned aerial vehicles (UAVs) inked in Dec 2024. The deal also includes local assembly and the establishment of a global maintenance, repair and overhaul facility in India.
Discussions continue on the procurement of six Poseidon P 8I maritime surveillance aircraft, which has stalled currently due to a massive price hike. In the early stages are discussions on the procurement and local production of the Javelin anti-tank guided missiles and Stryker infantry combat vehicle. India may also place additional orders for the Apache helicopters, six of which are currently under procurement.
India has conveyed that it is not interested in procuring the F35 fighter aircraft offered by Trump during PM Modi’s last visit to the US. Despite this, the US remains a major defence supplier for India.
The military leadership of both nations have realized that focus on countering Chinese expansionism in the Indo-Pacific must continue. Hence diplomatic and economic disputes have thus far not impacted defence cooperation, which has continued to grow. However, this time the dispute appears to have taken on a new level, with Trump displaying vengeance, rather than logic, in the trade war. The first possible target would be the QUAD leaders’ summit.
Trump displaying proximity to Pakistan has further fuelled India’s uneasiness. His intent appears to be to play the Pak card against India. How will the Pak-US relationship pan out in terms of defence deals will play a major role in determining future India-US ties.
India, on its part is working to build its military capabilities to face two major adversaries and cannot let defence deals be impacted by the trade dispute. It has limited options in terms of technology needed and availability of suppliers, especially as Europe continues to feed Ukraine with military resources and Russia engaged in an ongoing conflict.
The US congress has members wanting to target India for its proximity to Russia and this could impact its defence procurements. More importantly, it could limit transfer of technology to India including local production, damaging the government’s ‘make in India’ initiative. Trump’s transactional approach to leadership alongside his hurt ego could lead to him limiting defence cooperation between the two states or providing similar weapons to Pakistan as a means to further pressure India. For Pakistan and China, a degradation in US-India defence cooperation would open doors for greater adventurism.
Within India too there is a rising chorus on the US not being a dependable ally in the long term as was the belief earlier. This could result in hesitation in continuing defence procurements from the US. Rumours of a ‘kill-switch’ in US products would gain steam. The Indo-US strategic partnership took decades to build and is now threatened by Trump’s singular intent of vengeance. The ultimate break in ties could result from Trump leveraging defence procurements to trade and diplomatic concessions.
Currently there is a need for defence planners on both sides to display maturity avoiding linking defence cooperation with the trade war. The defence partnership must remain the cornerstone of recreating strategic ties in the long term. For the moment, India and US defence planners must keep defence agreements out of the gambit of the ongoing trade conflict.
About the Author
Maj Gen Harsha Kakkar
Retired Major General Indian Army
India – US ties are important in many dimensions. These have borne fruit over decades.
Tarrifs, are yet another facet in Indo US ties. They will mature over time.
India-Russia relationships are also vital. They need not be sacrificed at the alter.
The US has sanctioned Russia, yet has flourishing trade with Russia, in certain key rare earth materials and alloys.
I think US is not happy on some other count.
Very true. The luncheon of Asim Munir is a display of anger