India pause ₹3.6 bn Boeing deal following Trump’s 50% tariff hike: Reports

In response to US President Donald Trump’s decision to impose up to 50% tariffs on Indian imports, India has reportedly paused a trade deal with Boeing worth ₹3.6 billion, according to reports.

President Trump announced the tariff hike on Wednesday, stating that it was part of broader efforts to reinforce sanctions against Russia in light of its ongoing actions in Ukraine. The White House stated that the move aims to tighten economic pressure on countries indirectly supporting Russia, including India.

Following which the Ministry of Defence has reportedly decided to put on hold  the acquisition of the ordered Boeing jets and is now exploring alternative options. However, no official announcement has been made by the Indian government yet.

Sources suggest that the decision to cancel the deal came amid rising project costs triggered by the new US tariffs.

According to the US order, India is being penalised for directly or indirectly importing oil from Russia, which Washington considers a threat to its national security and foreign policy interests.

“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25%,” the order states.

The new tariffs will apply to all eligible Indian goods entering the US starting 21 days after the order is signed, excluding shipments already in transit and cleared before September 17.