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India reels from US tariff hike threat

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India reels from US tariff hike threat


Workers sit on a cart at a wholesale market in the old quarters of Delhi, India. — Reuters/File
Workers sit on a cart at a wholesale market in the old quarters of Delhi, India. — Reuters/File

MUMBAI: Indian exporters are scrambling for options to mitigate the fallout of US President Donald Trump’s threatened tariff salvo against the world’s most populous nation.

Many warn of dire job losses after Trump said he would double new import tariffs from 25% to 50% if India continues to buy Russian oil, in a bid to strip Moscow of revenue for its military offensive in Ukraine.

“At 50% tariff, no product from India can stand any competitive edge,” said economist Garima Kapoor from Elara Securities.

India, one of the world’s largest crude oil importers, has until August 27 to find alternatives to replace around a third of its current oil supply from abroad.

While New Delhi is not an export powerhouse, it shipped goods worth about $87 billion to the United States in 2024.

A man reads a newspaper with reports on tariff after US President Donald Trump announced an additional 25% tariff on Indian goods, alongside a market in New Delhi, India, August 7, 2025. — Reuters
A man reads a newspaper with reports on tariff after US President Donald Trump announced an additional 25% tariff on Indian goods, alongside a market in New Delhi, India, August 7, 2025. — Reuters 

That 50% levy now threatens to upend low-margin, labour-intensive industries ranging from gems and jewellery to textiles and seafood.

The Global Trade Research Initiative estimates a potential 60% drop in US sales in 2025 in sectors such as garments.

Exporters say they are racing to fulfil orders before the deadline.

“Whatever we can ship before August 27, we are shipping,” said Vijay Kumar Agarwal, chairman of Creative Group. The Mumbai-based textile and garment exporter has a nearly 80% exposure to the US market.

But Agarwal warned that is merely triage.

Shipping goods before the deadline “doesn´t solve” the problem, he said.

“If it doesn’t get resolved, there will be chaos,” he said, adding that he’s worried for the future of his 15,000 to 16,000 employees.

“It is a very gloomy situation […] it will be an immense loss of business.”

Livelihoods threatened

Talks to resolve the matter hinge on geopolitics, far from the reach of business. Trump is set to meet Vladimir Putin on Friday, the first face-to-face meeting between the two countries’ presidents since Russia launched its full-scale invasion of Ukraine in February 2022.

New Delhi, with longstanding ties with Moscow, is in a delicate situation.

Since Trump’s tariff threats, Prime Minister Narendra Modi has spoken to both Putin and Ukrainian President Volodymyr Zelensky, urging a “peaceful resolution” to the conflict.

Meanwhile, the US tariff impact is already being felt in India.

Garment workers cut fabric to make shirts at a textile factory of Texport Industries in Hindupur town in the southern state of Andhra Pradesh, India. — Reuters/File
Garment workers cut fabric to make shirts at a textile factory of Texport Industries in Hindupur town in the southern state of Andhra Pradesh, India. — Reuters/File

Businesses say fresh orders from some US buyers have begun drying up — threatening millions of dollars in future business and the livelihoods of hundreds of thousands in the world’s fifth biggest economy.

Among India’s biggest apparel makers with global manufacturing operations, some are looking to move their US orders elsewhere.

Top exporter Pearl Global Industries has told Indian media that some of its US customers asked that orders be produced in lower-duty countries such as Vietnam or Bangladesh, where the company also has manufacturing facilities.

Major apparel maker Gokaldas Exports told Bloomberg it may boost production in Ethiopia and Kenya, which have a 10% tariff.

‘Nothing happening now’

Moody’s recently warned that for India, the “much wider tariff gap” may “even reverse some of the gains made in recent years in attracting related investments”.

India’s gems and jewellery industry exported goods worth more than $10 billion last year and employs hundreds of thousands of people.

“Nothing is happening now, everything is at a standstill, new orders have been put on hold,” Ajesh Mehta from D Navinchandra Exports told AFP.

“We expect up to 150,000 to 200,000 workers to be impacted.”

Gems, and other expensive non-essential items, are vulnerable.

“A 10% tariff was absorbable — 25% is not, let alone this 50%,” Mehta added.

An employee works inside an engineering goods export unit in the manufacturing hub of Faridabad on the outskirts of New Delhi, India. — Reuters/File
An employee works inside an engineering goods export unit in the manufacturing hub of Faridabad on the outskirts of New Delhi, India. — Reuters/File 

“At the end of the day, we deal in luxury products. When the cost goes up beyond a point, customers will cut back.”

Seafood exporters, who have been told by some US buyers to hold shipments, are hoping for new customers.

“We are looking to diversify our markets,” says Alex Ninan, who is a partner at the Baby Marine Group.

“The United States is totally out right now. We will have to push our products to alternative markets, such as China, Japan… Russia is another market we are really looking into.”

Ninan, however, warns that is far from simple. “You can’t create a market all of a sudden,” he said.





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British MP Tulip Siddiq handed two-year prison sentence in Bangladesh graft case

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British MP Tulip Siddiq handed two-year prison sentence in Bangladesh graft case


MP Tulip Siddiq attends a news conference in London, Britain October 11, 2019. — Reuters
MP Tulip Siddiq attends a news conference in London, Britain October 11, 2019. — Reuters
  • Ex-Bangladesh PM Sheikh Hasina, sister Rehana also sentenced.
  • Case relates to illegal allocation of a plot of land: local media.
  • Prosecutors highlight political influence, collusion abuse of power.

DHAKA: A Bangladesh court sentenced British parliamentarian and former minister Tulip Siddiq to two years in jail in a corruption case involving the alleged illegal allocation of a plot of land, local media reported.

The verdict was delivered in absentia as Siddiq, her aunt and former Bangladesh Prime Minister Sheikh Hasina, and Hasina’s sister Sheikh Rehana — all co-accused in the case — were not present in court.

Hasina was sentenced to five years in jail and Rehana to seven, the local media reports said.

Hasina, who fled to neighbouring India in August 2024 at the height of an uprising against her government, was sentenced to death last month over her government’s violent crackdown on demonstrators during the protests.

Last week, she was handed a combined 21-year prison sentence in other corruption cases.

Prosecutors said that the land was unlawfully allocated through political influence and collusion with senior officials, accusing the three powerful defendants of abusing their authority to secure the plot, measuring roughly 13,610 square feet, during Hasina’s tenure as prime minister.

Most of the 17 accused were absent when the judgement was pronounced.

Siddiq, who resigned in January as the UK’s minister responsible for financial services and anti-corruption efforts following scrutiny over her financial ties to Hasina, has previously dismissed the allegations as a “politically motivated smear”.

Britain does not currently have an extradition treaty with Bangladesh.





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Elon Musk reveals partner’s half-Indian roots, son’s middle name ‘Sekhar’

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Elon Musk reveals partner’s half-Indian roots, son’s middle name ‘Sekhar’


SpaceX owner and Tesla CEO Elon Musk speaks at the E3 gaming convention in Los Angeles, California, US, June 13, 2019. — Reuters
SpaceX owner and Tesla CEO Elon Musk speaks at the E3 gaming convention in Los Angeles, California, US, June 13, 2019. — Reuters

Tesla and SpaceX CEO Elon Musk has said his partner, Neuralink executive Shivon Zilis, is half-Indian and that one of their sons has the middle name “Sekhar” after Indian-American physicist and Nobel laureate Subrahmanyan Chandrasekhar.

Speaking on Zerodha founder Nikhil Kamath’s “WTF is?” podcast, Musk said: “I’m not sure if you know this, but my partner Shivon is half Indian,” adding: “One of my sons with her, his middle name is Sekhar after Chandrasekhar.”

Musk also spoke about Zilis’s background when asked where she grew up, saying she was given up for adoption as a baby and raised in Canada. “She grew up in Canada. She was given up for adoption when she was a baby. I think her father was like an exchange student at the university or something like that… I’m not sure the exact details,” he said.

Zilis joined Musk’s AI company, Neuralink, in 2017 and is currently the Director of Operations and Special Projects. She has a Bachelor of Arts in Economics and Philosophy from Yale University. Zilis has four children with Musk — twins Strider and Azure, daughter Arcadia and son Seldon Lycurgus.

Earlier this year, in March, it emerged that Musk had another child, his 14th, with Zilis. 

“Discussed with Elon and, in light of beautiful Arcadia’s birthday, we felt it was better to also just share directly about our wonderful and incredible son Seldon Lycurgus,” Zilis said in a post on X, without saying when the child was born. Musk responded with a heart. 

Her announcement came two weeks after conservative influencer Ashley St Clair said that she also recently had a child with Musk.

Appearing on the latest episode of Kamath’s podcast, Musk also said that America has “been an immense beneficiary of talent from India, but that seems to be changing now”. 

His comments come at a time when the American dream for thousands of Indians is turning sour due to rising US visa restrictions and policy unpredictability.


— With additional input from Reuters





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Trump says US freeze on asylum decisions will last ‘a long time’

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Trump says US freeze on asylum decisions will last ‘a long time’


US President Donald Trump speaks to reporters as White House Press Secretary Karoline Leavitt stands by aboard Air Force One on his return to Washington, DC, March 9, 2025. — Reuters
US President Donald Trump speaks to reporters as White House Press Secretary Karoline Leavitt stands by aboard Air Force One on his return to Washington, DC, March 9, 2025. — Reuters
  • Freeze applies to 19 countries already under US travel restrictions.
  • Lakanwal, ex-CIA-backed fighter, charged with first-degree murder.
  • Officials blame weak Joe Biden-era airlift vetting for shooter’s entry.

US President Donald Trump said Sunday his administration intends to maintain a pause on asylum decisions for “a long time” after an Afghan national allegedly shot two National Guard members near the White House, killing one of them.

When asked to specify how long it would last, Trump said he had “no time limit” in mind for the measure, which the Department of Homeland Security says is linked to a list of 19 countries already facing US travel restrictions.

“We don’t want those people,” Trump continued. “You know why we don’t want them? Because many have been no good, and they shouldn’t be in our country.”

The Trump administration issued the pause in the aftermath of the shooting in Washington on November 26, which left 20-year-old Sarah Beckstrom dead and another guard critically wounded.

A 29-year-old Afghan national, Rahmanullah Lakanwal, has been arrested and charged with first-degree murder in connection with the incident.

Lakanwal had been part of a CIA-backed “partner force” fighting the Taliban in Afghanistan, and entered the United States as part of a resettlement program following the American military withdrawal from Afghanistan in 2021.

Lakanwal had been granted asylum in April 2025, under the Trump administration, but officials have blamed what they called lax vetting by the government of Trump’s predecessor, Joe Biden, for his admission to US soil during the Afghan airlift.

Trump wrote after the shooting that he planned to “permanently pause migration from all Third World Countries to allow the US system to fully recover.”

Asked which nationalities would be affected, the Department of Homeland Security pointed AFP to a list of 19 countries — including Afghanistan, Cuba, Haiti, Iran and Myanmar — which since June have all faced travel restrictions to the United States. 

Radicalised in US

Authorities believe the Lakanwal was not radicalised until after he came to the United States, Homeland Security Secretary Kristi Noem said on Sunday.

Speaking on NBC’s “Meet the Press” and ABC’s “This Week,” Noem said authorities think the alleged shooter was already living in Washington state when he became radicalised. Investigators are seeking more information from family members and others, Noem said.

Noem’s comments suggest Lakanwal, who was part of a CIA-backed unit in Afghanistan, may have embraced extremism after arriving in the United States.

“We believe he was radicalised since he’s been here in this country,” Noem told NBC News. “We do believe it was through connections in his home community and state, and we’re going to continue to talk to those who interacted with him, who were his family members.”

Noem said officials have received “some participation” so far from people who knew Lakanwal and warned the US would pursue anyone connected to the shooting.

“Anyone who has the information on this needs to know that we will be coming after you, and we will bring you to justice,” Noem said.

After Wednesday’s attack, the Trump administration took steps to clamp down on some legal immigration, including a freeze on the processing of all asylum applications.

Noem said on Sunday, immigration officials would consider deporting people with active asylum cases if it was warranted.

“We are going to go through every single person that has a pending asylum claim,” she said.





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