Politics
Modi calls Trump tariffs ‘unjustified’, unveils tax cut incentives

Indian Prime Minister Narendra Modi’s plan to reduce consumption taxes on everyday goods could provide billions of dollars in annual relief and stimulate demand in an economy preparing for potential US tariffs, experts say.
US President Donald Trump has warned he may double import duties on India from 25% to 50% in response to New Delhi’s purchase of Russian oil, arguing such transactions help Moscow finance its war in Ukraine.
The threat has cast uncertainty over the outlook for the world’s fifth-largest economy, with Indian exporters cautioning about declining orders and significant job losses.
Calling Washington’s move “unfair, unjustified and unreasonable,” New Delhi is working to cushion the impact.
Modi, during his recent Independence Day address, pledged to “reduce the tax burden on the common man.”
The proposed cuts to the goods and services tax (GST) would make items ranging from small cars to air conditioners more affordable for consumers, according to economists.
Currently, the GST functions under a four-tier structure, with rates spanning from five to 28%. Under Modi’s plan, most goods would be simplified into just two categories, taxed at either five or 18%.
The Indian leader has called the change a “Diwali gift”, a reference to the annual Hindu festival of lights when consumers splurge on everything from gold and clothes to consumer electronics.
‘Sizeable savings’
Trump’s tariffs — and their impact on ordinary Indians will hinge on how much progress is made towards a Russia-Ukraine peace deal, and whether New Delhi can secure alternative oil suppliers before the US president’s August 27 deadline.
But experts say Modi’s tax reform could help shore up demand by reducing tax collections by between $13 billion and $17 billion.
Analysts at Emkay Global Financial Services called the policy a “welcome reform towards boosting domestic consumption”.
They estimated that about the vast majority of items currently subject to the top 28% rate would be taxed at 18%, while “nearly all” in the 12% tier would move into the 5% bracket.
Analysts at Motilal Oswal, an Indian financial services firm, said the changes would bring benefits to a wide range of sectors and “sizeable savings” to households.
The fate of the proposal ultimately rests with the GST Council, which includes representatives from state governments and has struggled to achieve broad consensus in the past.
If approved, the cuts would strain public finances, according to experts.
However, they said, they could also help to offset tariff risks and burnish Modi’s credentials among the middle class.
The proposal comes ahead of expected elections later this year in Bihar, a large, Hindu-majority state of 130 million people that is a key political battleground for Modi.
“The popular economic narrative right now is that of Trump’s 50% tariffs and how the US-India relationship is seeing setbacks,” Deepanshu Mohan, economist at OP Jindal Global University, told AFP.
“The GST readjustment is a strong response from Modi in that context. It’s Modi telling the middle class: ‘We are trying to make sure you have enough at your end,'” Mohan said.
But, he added, it was also an acknowledgement that India’s economy had not worked for its “low middle-income class for some time”.
US-India Trade Tensions
Although economists have long urged an overhaul of the GST framework, Modi’s unexpected announcement comes at a time when US-India relations have sunk to a multi-decade low.
Experts warn that without a trade agreement, Trump’s proposed tariffs could push India’s GDP growth below 6% this fiscal year lower than the Reserve Bank of India’s projection of 6.5%.
India’s position on Russian oil imports will become clearer by late September, as most of this month’s shipments were contracted before Trump’s threats, according to trade intelligence firm Kpler.
Kpler analyst Sumit Ritolia told AFP that while Indian refiners are showing “growing interest” in US, West African, and Latin American crude, this reflects “greater flexibility, not a deliberate pivot.”
“Unless there is a clear policy shift or a sustained change in trade economics, Russian supplies will remain a central part of India’s crude basket,” Ritolia added.
Meanwhile, the outlook for US-India trade talks remains uncertain as the tariff deadline draws closer.
New Delhi insists it is committed to reaching a deal, but Indian media reports suggest Washington has postponed a planned late-August negotiating visit to New Delhi.
Politics
Europeans launch UN sanctions process on Iran, says letter


- Britain, France, Germany send letter to UN Security Council.
- E3 hopes move will push Iran to make commitments.
- “E3’s commitment to diplomatic solution remains steadfast.”
Britain, France and Germany launched a 30-day process to reimpose UN sanctions on Iran over its nuclear programme on Thursday, a step likely to stoke tensions two months after Israel and the United States bombed Iran, according to a letter sent by E3 to the UN Security Council seen by Reuters.
The trio, known as the E3, said in a statement they had decided to trigger the so-called snapback mechanism before they lose the ability in mid-October to restore sanctions on Tehran that were lifted under a 2015 nuclear accord with world powers.
They have held several rounds of talks with Iran since Israel and the United States struck its nuclear installations in mid-June, aiming to agree to defer the mechanism but they deemed that talks in Geneva on Tuesday did not yield sufficiently tangible commitments from Iran.
The E3 have pressed ahead now over accusations that Iran has violated the 2015 deal that aimed to prevent Tehran from developing a nuclear weapon. The United States, which was party to that deal, pulled out under President Donald Trump in 2018, and held failed indirect negotiations earlier this year with Tehran.
The E3, whose ministers informed US Secretary of State Marco Rubio of their decision on Wednesday, said they hoped that Iran would engage by the end of September to provide commitments over its nuclear programme that will convince them to defer concrete action.
“The E3 are committed to using every diplomatic tool available to ensure Iran never develops a nuclear weapon. That includes our decision to trigger the ‘snapback’ mechanism today through this notification,” they said in the letter.
“The E3’s commitment to a diplomatic solution nonetheless remains steadfast. The E3 will fully make use of the 30-day period following the notification in order to resolve the issue giving rise to the notification.”
Meanwhile, Britain, France, and Germany’s move to reimpose all UN sanctions on Iran is “illegal and regrettable”, a senior Iranian official told Reuters, adding that Tehran was reviewing its options including withdrawing from the Non-Proliferation Treaty.
“The move is an action against diplomacy, not a chance for it … However, Iran will continue diplomacy with the E3 … (But) Iran will not concede under pressure,” added the senior official.
The E3 had offered to extend the snapback for as much as six months to enable serious negotiations if Iran resumes full UN inspections — which would also seek to account for Iran’s large stock of enriched uranium that has not been verified since the June strikes — and engages in talks with the United States.
Growing frustration in Iran
The UN process takes 30 days before sanctions that would cover Iran’s financial, banking, hydrocarbons and defence sectors are restored.
Growing fears of renewed United Nations sanctions under the snapback mechanism are fuelling frustration in Iran, where economic anxiety is rising and political divisions are deepening, three insiders close to the government said.
As the prospect of tighter international restrictions threatens to further isolate the Islamic Republic, officials in Tehran remain split — with hardliners urging defiance and confrontation, while moderates advocate diplomacy.
Iran’s rial weakened sharply since Wednesday after a Reuters report about the E3 moving to trigger the return of United Nations sanctions.
Iran has been enriching uranium to up to 60% fissile purity, a short step from the roughly 90% of weapons-grade, and had enough material enriched to that level, if refined further, for six nuclear weapons, before the strikes by Israel started on June 13, according to the IAEA.
Actually producing a weapon would take more time, however, and the IAEA has said that while it cannot guarantee Tehran’s nuclear programme is entirely peaceful, it has no credible indication of a coordinated weapons project.
The West says the advancement of Iran’s nuclear programme goes beyond civilian needs, while Tehran denies it is seeking nuclear weapons.
Politics
Trump moves to limit US stays of students, journalists

US President Donald Trump’s administration moved on Thursday to impose stricter limits on how long foreign students and journalists can stay in the United States, the latest bid to tighten legal immigration in the country.
Under a proposed change, foreigners would not be allowed to stay for more than four years on student visas in the US.
Foreign journalists would be limited to stays of just 240 days, although they could apply to extend by additional 240-day periods — except for Chinese journalists who would get just 90 days.
The US, until now, has generally issued visas for the duration of a student’s educational programme or a journalist’s assignment, although no non-immigrant visas are valid for more than 10 years.
The proposed changes were published in the Federal Register, initiating a short period for public comment before they can go into effect.
Trump’s Department of Homeland Security alleged that an unspecified number of foreigners were indefinitely extending their studies so they could remain in the country as “‘forever’ students.”
“For too long, past administrations have allowed foreign students and other visa holders to remain in the US virtually indefinitely, posing safety risks, costing untold amount of taxpayer dollars and disadvantaging US citizens,” the department said in a press statement Wednesday.
The department did not explain how US citizens and taxpayers were hurt by international students, who according to Commerce Department statistics contributed more than $50 billion to the US economy in 2023.
The United States welcomed more than 1.1 million international students in the 2023-24 academic year, more than any other country, providing a crucial source of revenue as foreigners generally pay full tuition.
A group representing leaders of US colleges and universities denounced the latest move as a needless bureaucratic hurdle that intrudes on academic decision-making and could further deter potential students who would otherwise contribute to research and job creation.
“This proposed rule sends a message to talented individuals from around the world that their contributions are not valued in the United States,” said Miriam Feldblum, president and CEO of the Presidents’ Alliance on Higher Education and Immigration.
“This is not only detrimental to international students — it also weakens the ability of US colleges and universities to attract top talent, diminishing our global competitiveness.”
Backlash
The announcement came as universities were starting their academic years with many reporting lower enrollments of international students after earlier actions by the Trump administration.
But Trump also heard rare criticism within his base when he mused Monday that he would like to double the number of Chinese students in the United States to 600,000 as he hailed warm relations with counterpart Xi Jinping.
His remarks marked a sharp departure from Secretary of State Marco Rubio’s earlier vow to “aggressively” rescind visas of Chinese students.
The State Department said last week it had overall revoked 6,000 student visas since Trump took office, in part due to Rubio’s targeting of campus activists who led demonstrations against Israel.
Trump has also suspended billions of dollars in federal research funds to universities, with his administration contending they have not acted against antisemitism, and Congress has sharply raised taxes on private universities’ endowments.
In a speech before he was elected, Vice President JD Vance said conservatives must attack universities, which he described as “the enemy.”
Trump, at the end of his first term, had proposed curbing the duration of journalist visas, but his successor Joe Biden scrapped the idea.
Politics
SCO Driving Regional Prosperity Through Cooperation

When the Shanghai Cooperation Organization (SCO) was established in 2001, its primary mission was to enhance regional security and stability. Over the years, however, its scope has expanded significantly to encompass economic cooperation reflecting the reality that sustainable prosperity and enduring stability are inseparable.
Today, the SCO is the world’s largest regional organization in terms of geography and population. With a vast market, abundant resources, and immense growth potential, the bloc has become an important driver of regional and global development. One of its central objectives now is to facilitate trade and investment among member states. To this end, mechanisms such as the SCO Business Council and the Interbank Consortium have been set up to boost cross border commerce and financial cooperation.
The results are tangible. In 2024, trade volume between China and other SCO member states, observer states, and dialogue partners hit a record $890 billion, accounting for 14.4 percent of China’s total exports and imports. This surge underscores both the vitality and the prospects of intra regional trade.
SCO cooperation has also paved the way for greater infrastructure connectivity across Eurasia. Landmark projects like the China Central Asia West Asia Economic Corridor and the China-Kyrgyzstan-Uzbekistan Railway have significantly reduced trade barriers and shortened transport times. Energy security remains another pillar of cooperation. The China Central Asia Gas Pipeline and the Eastern Russia China Natural Gas Pipeline not only safeguard the region’s energy needs but also contribute to stabilizing global energy markets. Recently, SCO member states signed an MoU to jointly construct “Silk Road Stations” aimed at addressing critical infrastructure gaps along expanding trade routes.
Beyond physical connectivity, the SCO has played a pivotal role in aligning development strategies. China’s Belt and Road Initiative complements national strategies such as Kazakhstan’s Bright Road Initiative, Kyrgyzstan’s National Development Program, and Tajikistan’s National Development Strategy. This synergy highlights the SCO’s strength in fostering shared development models.
Sustainable development has become a new priority for the SCO, with green growth and digital transformation at its core. According to a report released at the SCO Energy Ministers’ Meeting in June, the bloc’s total renewable energy installed capacity reached 2.31 billion kW by the end of 2024 nearly half of the global total. The SCO Green Development Forum provides a dedicated platform for advancing these goals under the organization’s Green Development Agenda.
The digital sphere is another frontier. The SCO Digital Economy Forum and the Digital Silk Road initiative have accelerated Eurasia’s digital integration. In 2024, cross-border e-commerce between China and other SCO states surged 34 percent year-on-year. Moreover, the Action Plan for Digital Transformation of SCO Member States, adopted in June, is set to deepen collaboration in e-commerce, artificial intelligence, and smart infrastructure.
Despite remarkable achievements, the SCO faces hurdles in deepening integration. Externally, it remains under scrutiny and sustained pressure from the West, which often seeks to divide rather than unite. Internally, differences in development stages, economic models, cultural traditions, and lingering geopolitical disputes sometimes slow down cooperation. To address these challenges, the SCO must continue strengthening institutional mechanisms in five priority areas: policy, infrastructure, trade, finance, and people-to-people ties. By doing so, member states can align their competitive advantages, foster mutual trust, and create a more resilient framework for cooperation.
The upcoming SCO Summit in Tianjin, hosted by China as the organization’s rotating president, is expected to further unlock the group’s vast potential. At a time when protectionist tariffs, unilateral sanctions, and technological barriers threaten global growth, the SCO offers a counter-narrative championing openness, inclusivity, and shared prosperity.
As one of the pioneering regional organizations of the Global South, the SCO provides an alternative to exclusive Western clubs. Its model demonstrates that multilateralism, when inclusive and pragmatic, can deliver concrete benefits to all members. In doing so, the SCO continues to build not only a platform for cooperation but also a common home of stability, prosperity, and development for the Eurasian region and beyond.
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