India has reportedly pressed pause on a $3.6 billion deal to procure Boeing jets from the US following the imposition of 50% tariffs.
The original deal for six additional Boeing P-8I maritime patrol aircraft was approved by the US State Department in 2021 for $2.42 billion.
The price has soared in the ensuing years due to supply chain disruptions, inflation, and the tariffs imposed by US President Donald Trump.
According to reports citing defence sources, the decision was taken due to a nearly 50% hike in project costs.
Multiple reports suggest that the Ministry of Defence has therefore chosen to pause the acquisition and conduct a strategic reassessment.
The developments came even as Air India began sending its legacy Boeing 787-8 Dreamliners for retrofitting in the US.
There are a total of 33 Dreamliners with Air India — 26 legacy Boeing 787-8s and 7 Boeing 787-9s. »