Politics
Steep US tariffs set to hit Indian exports from Wednesday

Indian exporters are bracing for a sharp decline in orders from the United States after trade talks collapsed and Washington confirmed that steep new tariffs on the South Asian nation’s goods would take effect from Wednesday, escalating tension between the strategic partners.
An additional 25 per cent duty announced by President Donald Trump, confirmed in a notice by the Homeland Security Department, takes total tariffs to as much as 50pc, among Washington’s highest, in retaliation for New Delhi’s increased buying of Russian oil.
“The government has no hope for any immediate relief or delay in US tariffs,” said a commerce ministry official, who sought anonymity for lack of authorisation to speak to the media.
Exporters hit by tariffs would receive financial assistance and be encouraged to diversify to alternative markets such as China, Latin America and the Middle East, the official added.
However, the commerce ministry did not immediately respond to an email seeking comment on the latest notice.
The new duties will apply from 12:01am EDT on Wednesday (9:31am IST), it showed. Exceptions are shipments in transit, humanitarian aid and items under reciprocal trade programmes.
The Indian rupee fell to a three-week closing low of 87.68 against the dollar, despite recovering some ground after suspected central bank intervention to support it.
The benchmark equity indexes closed down 1pc each, for their worst sessions in three months.
Wednesday’s tariff move follows five rounds of failed talks, during which Indian officials had signalled optimism that tariffs could be capped at 15pc.
Officials on both sides blamed political misjudgment and missed signals for the breakdown in talks between the world’s biggest and fifth-largest economies, whose two-way trade is worth more than $190 billion.
White House trade adviser Peter Navarro and US Treasury Secretary Scott Bessent have accused India of indirectly funding Russia’s war against Ukraine by boosting Russian oil purchases.
This month, Bessent said India was profiteering from its sharply increased imports, making up 42pc of total oil purchases, versus less than 1pc before the war, in a shift Washington has called unacceptable.
India has issued no directive yet on oil purchases from Russia. Companies will continue to buy oil on the basis of economics, three refining sources said.
Exporter groups estimate hikes could affect nearly 55pc of India’s merchandise exports worth $87bn to the US, while benefiting competitors such as Bangladesh, China and Vietnam.
“The US customers have already stopped new orders,” said Pankaj Chadha, president of the Engineering Exports Promotion Council. “With these additional tariffs, the exports could come down by 20-30pc from September onward.”
The government has promised financial aid such as greater subsidies on bank loans and support for diversification in the event of financial losses, Chadha added.
“However, exporters see limited scope for diversifying to other markets or selling in the domestic market.”
The commerce ministry official said the government had identified nearly 50 countries to which India could boost exports, particularly items such as textiles, food processed items, leather goods and marine products.
India’s diamond industry exports have already hit a two-decade low on weak Chinese demand, and the higher tariffs now threaten to cut it off from its largest market, taking nearly a third of $28.5bn annual shipments of gems and jewellery.
Broader economic impact
Private sector analysts warn that a sustained 50pc tariff could weigh on India’s economy and corporate profits, prompting the steepest earnings downgrades in Asia, even if proposed domestic tax cuts partly cushion the blow.
Last week, Capital Economics said full US tariffs would chip 0.8 percentage points from India’s economic growth both this year and the next.
Foreign Minister S. Jaishankar also said trade talks continued and Washington’s concern over Russian oil purchases was not equally applied to other major buyers such as China and the European Union.
The US could be a major energy supplier to India, an official of its New Delhi embassy said on Tuesday.
The US is committed to collaborating with India on exports of high-quality products and services to help achieve energy security and economic growth, the official added.
Prime Minister Narendra Modi has vowed not to compromise the interests of Indian farmers, even if it entails a heavy price. Modi is also moving to burnish ties with China, planning his first visit there in seven years at the end of the month.
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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