India has announced a pause on the purchase of billions of dollars’ worth of American-made weapons following the rollout of high tariffs on the country, leaving President Donald Trump “completely upset” with Indian leadership.
“We are in a situation now where he is completely upset with India,” said Mukesh Aghi, president and CEO of the United States-India Strategic Partnership Forum, Politico reported Friday.
“And the 25 years of effort to build a relationship seems to be going down in 25 hours. We need to arrest this in some manner… because the relationship is critical for both nations.”
India has been hit with a 50% tariff rate from the United States as part of Trump’s so-called reciprocal tariffs, a rate double of Trump’s initial 25% proposal in retaliation for the country continuing to purchase Russian oil.
India has hit back at the United States, however, announcing on Friday that it had halted a previously planned purchase of combat vehicles, Javelin missiles and Boeing planes amid the ongoing trade feud, Reuters reported. The announcement could prove a significant blow to American weapons manufacturers, with India being the world’s second-largest arms importer.
A Trump administration official, speaking with Politico on the condition of anonymity, said that what India was bringing to the table in trade talks was “totally insufficient,” leading to the stiff 50% tariffs rate.
“The president was able to get a number of countries to go to zero (tariff rates), or close to zero in other cases,” the official said, speaking with Politico. “And so when he looked at the India offer, the team realized it was just totally insufficient.”
Trump has suggested negotiations will continue, however, and that the high tariff rate on India could very well be a bargaining position for future talks.
“It’s only been eight hours,” Trump said shortly after signing the executive order that imposed the 50% tariff rate on India. “You’re going to see a lot more.”