Did India pause $3.6 billion Boeing jets deal amid Trump’s 50% tariff? Here’s what reports claim

India has put a hold on a $3.6 billion deal to procure Boeing jets from the United States after the imposition of 50 per cent tariffs, according to reports. The original deal included the purchase of six additional Boeing P-8I aircraft, used for maritime patrol, and was approved by the US State Department earlier in 2021 for $2.42 billion. But the price soared in the ensuing years due to disruptions in the supply chain, inflation, and the US tariffs.

Financial Express reported, citing a report, that the decision to pause the Boeing deal was taken after the White House announced imposing additional tariffs on India, raising the earlier 25 per cent to 50 per cent.

Reports citing defence sources highlighted that there has been a sharp spike in price due to the imposition of 25 per cent tariffs by Trump at the beginning of August. This resulted in parts and components related to the aircraft procurement being significantly more expensive for the US aircraft maker, which has been passed down to the buyers, including India.

The reports suggested that the Ministry of Defence has decided to pause the acquisition and conduct a strategic reassessment of the deal with Boeing. This will include analysing factors like rising costs, geopolitical developments, and strategic autonomy before making a final decision.

However, it is to be noted that there has been no official confirmation regarding the deal or its suspension from the Indian government.

The developments come as Air India started sending its legacy Boeing 787-8 Dreamliners for retrofitting in the US. Sources familiar with the matter told news agency PTI that the first revamped jet was expected to join the fleet by the end of this year. Notably, there are a total of 33 Dreamliners with Air India, including 26 legacy Boeing 787-8s and seven Boeing 787-9s.

Watch | Trump Rules Out Trade Talks With India Amid Tariff Dispute