Ever since US President Donald Trump has announced a 50 per cent tariff on India, many such reports have come out that India has stopped the defense deal with the US. Sources in the Indian Ministry of Defense have dismissed such reports and termed them as false and fabricated.

According to sources in the Ministry of Defense, various matters of procurement are being carried forward according to the current processes. An international media institute claimed in its report that India had postponed its new defense procurement plans. This news came in the midst of increasing tension in the two countries after the US has imposed tariffs on India.

Trump first imposed 25 percent tariff on India

Donald Trump had announced a 25 percent recipes on India last week, which came into effect from 7 August. Donald Trump signed an executive order on Wednesday, under which 25 percent additional fee has been imposed by India on the purchase of Russian oil, which increased the total fee to 50 percent.

A total of 50 percent tariff imposed on India is the highest fee levied by the US on any country in the world. The additional 25 percent fee on India will be applicable after 21 days i.e. from August 27.

The motive behind imposing so much tariff on India

The motive behind imposing so much tariff on India is believed that Trump wants India to compromise with America regarding agriculture and dairy sector. The Indian market should be opened for America’s dairy products, but India is not ready for it. A clear message has been given to America from India on this issue. Prime Minister Narendra Modi said on Thursday (August 7, 2025) that farmers are the first for the country. There will be no compromise on issues related to them.

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