India Rejects F-35 Deal Amid Trump Tariff Row

India is scrambling to manage the fallout after US President Donald Trump stunned New Delhi with a sudden 25% tariff threat, blindsiding Indian officials who had been optimistic about a bilateral trade deal. Rather than retaliating immediately, India is weighing options to calm the White House — including ramping up imports of US natural gas, gold, and communication equipment — but has firmly ruled out any major defence purchases, including the much-touted F-35 fighter jets.

Trump's tariff move has shocked policymakers in India, who say they are still committed to reaching a “mutually beneficial” trade deal with the US. According to insiders, India is considering increasing its imports from the US to reduce the trade imbalance, but remains cautious on sensitive sectors like defence. Commerce Minister Piyush Goyal told Parliament that the government is assessing the economic implications and will take necessary steps to protect national interests.

While India is open to easing trade tensions, it has informed Washington that it is not interested in purchasing F-35s, despite Trump pitching them during Modi’s White House visit in February. Instead, India is pushing for joint development and manufacturing of defence systems under its “Make in India” initiative.

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Meanwhile, US officials, including Treasury Secretary Scott Bessent, have accused India of dragging its feet in trade talks, criticizing the country’s close ties with Russia and calling it a “challenging partner.” Trump, too, lashed out on social media, calling India a “dead economy” and mocking its relationship with Russia, even though earlier statements from the White House indicated ongoing talks.

India’s currency and stock market took a hit following the announcement, but the broader economic response was restrained. Experts believe Trump’s tactics may be part of his usual high-pressure negotiation style. Still, with defence deals off the table and diplomatic friction rising, India is walking a tightrope as it tries to protect its interests without escalating tensions further.

The next round of US-India trade talks was expected later this year, with both sides having previously agreed to conclude a deal by fall. But with F-35s rejected and trade threats flying, the path ahead is uncertain.

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