India has reportedly paused a $3.6 billion deal to procure six Boeing P-8I maritime patrol aircraft due to soaring costs, partly driven by the U.S.’s recent tariff hike on Indian goods. Originally approved in 2021 at $2.42 billion, the deal’s cost rose due to inflation, supply chain issues, and tariffs imposed by President Donald Trump.
India Pauses $3.6B Boeing Deal Amid Soaring U.S. Tariffs
Defence sources cited the increased price of components as a key reason for the delay, prompting India’s Ministry of Defence to reassess the purchase. Meanwhile, Air India is retrofitting its Boeing 787-8 Dreamliners in the U.S., with plans to complete upgrades by year-end.
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