Tariff Dispute with U.S. Freezes India's Purchase of New Boeing P-8I Aircraft
The Indian Ministry of Defence has halted a multi-billion dollar deal to expand its fleet of surveillance and anti-submarine warfare aircraft.
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The Indian Ministry of Defence has decided to suspend negotiations for the purchase of six additional Boeing P-8I Poseidon maritime patrol aircraft, a key platform for its surveillance and anti-submarine warfare operations. The determination comes as a direct response to the announcement by the administration of U.S. President Donald Trump regarding the imposition of new trade tariffs against the Asian nation.
U.S. government sources justified the economic measures based on India's continued membership in the BRICS bloc and its procurement of diesel from Russia, which Washington considers a contribution to financing the conflict in Ukraine.
The suspended deal, which had already received a sales authorization from the Pentagon in 2021, included the incorporation of six P-8I aircraft. Although the contract was initially valued at approximately $2.4 billion, persistent problems in Boeing's global supply chain raised the list price to nearly $3.6 billion. According to the specialized portal IDRW, citing local sources, while the negotiation is structured as a government-to-government (Gov-to-Gov) agreement and would theoretically not be affected by the tariffs, the new economic pressure measures were the decisive factor for New Delhi to pause the process.
The Indian Navy already operates a fleet of twelve P-8Is, which have become the backbone of its long-range maritime patrol capability in the strategic Indian Ocean. These aircraft, a customized variant of the U.S. Navy's P-8A Poseidon, use a Boeing 737-800 fuselage combined with the reinforced wings of the 737-900ER.
Its mission equipment allows it to launch sonobuoys for submarine detection, as well as deploy torpedoes and anti-ship missiles, establishing it as one of the world's most advanced aerial platforms for these tasks. Currently, the P-8 Poseidon is virtually the only aircraft in its class in production in the Western bloc.
The decision leaves India with limited strategic alternatives. Russia, its historical supplier of military hardware, no longer produces aircraft with equivalent capabilities. Meanwhile, China develops the Shaanxi KQ-200, a turboprop aircraft derived from the old Antonov An-12, which does not meet the operational requirements of the Indian Navy. Furthermore, deep mistrust and geopolitical disputes between New Delhi and Beijing make any kind of defense cooperation impossible.
This suspension represents a fissure in the growing strategic partnership between India and the United States, which has been cultivated for years as a counterweight to Chinese influence in the Indo-Pacific region.
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