India Hits Back: F-35 Fighter Jet Deal with US Put on Hold Over Tariff Row
New Delhi (The Uttam Hindu): There is a big tension in the trade and strategic relations between India and America. After US President Donald Trump announced a massive 25 percent tariff on India, India has also responded by putting the billion-dollar F-35 fighter jet deal on hold.
While announcing the tariffs, President Trump said that India has done very little trade with the US so far and he blamed India's high import duty for this. After this unilateral action, relations between the two countries have become bitter.
According to a Bloomberg report, India has retaliated by informing the US that it is no longer interested in buying the F-35 stealth fighter jet. The irony is that this fighter aircraft was proposed by President Trump himself during Prime Minister Narendra Modi's visit to the US in February this year.
According to sources, India's move also reflects its changing defense policy. The Modi government is now giving priority to the 'Make in India' initiative in defense deals. India is now emphasizing on a defense model that includes joint production and transfer of technology, so that defense equipment can be designed and manufactured in the country itself.
However, despite taking a tough stand on the defense deal, the Indian government does not want to further escalate the confrontation on the trade front. According to the report, India will not impose any immediate retaliatory tariffs on Trump's announcement at the moment. Instead, alternative measures are being considered to pacify the White House. India can work on options like reducing the trade imbalance by increasing imports of natural gas, communication equipment and gold from the US in the coming 3-4 years.
Earlier, Trump had also made harsh comments on India-Russia relations. He had said, "I don't care what India does with Russia. Let them take their dead economies with them, I don't care." At present, India's priority is to keep the trade talks on track, but defense purchases have been kept out of the discussion.