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US pulls out of trade talks with India over escalating tariff tensions

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US pulls out of trade talks with India over escalating tariff tensions



Trade tensions between the United States and India have escalated further after Washington abruptly cancelled the planned trade talks that were scheduled for the final week of this month.

According to Indian media, a high-level US trade delegation had been expected to visit New Delhi from August 25 to 29, but the visit has now been called off.

The cancellation follows an intensifying tariff dispute between the two countries.

Washington had earlier cautioned New Delhi that if talks between US President Donald Trump and Russian President Vladimir Putin failed, additional tariffs could be imposed on Indian goods.

Reports suggest that the US decision may push overall tariffs on Indian exports beyond 50% a move analysts warn could deliver a serious blow to bilateral trade ties.

Meanwhile, Prime Minister Narendra Modi, in his annual Independence Day address from the historic Red Fort in New Delhi, emphasized India’s push for energy self-reliance and the development of robust defence systems.

He vowed to protect the country’s interests “like a wall,” even as India faces mounting US pressure and the looming threat of new tariffs.

“Self-reliance is the foundation of developed India,” Modi said after a flypast of military helicopters scattered flower petals above an invited crowd of thousands.

“Freedom becomes meaningless if someone becomes too dependent on others”.

Ties between New Delhi and Washington have been strained by Trump’s ultimatum that India end its purchases of Russian oil, a key source of revenue for Moscow as it wages its military offensive in Ukraine.

India has said it “stands ready” to support efforts to end the Ukraine war and endorses a summit to be held between Trump and Russian President Vladimir Putin in Alaska on Friday.

But the United States says it will double new import tariffs on India from 25 percent to 50 percent by August 27 if New Delhi does not switch crude suppliers.

“We know that we remain dependent on many countries to meet our energy needs”, said Modi, leader of the world’s most populous nation and fifth-biggest economy.

“But to build a truly self-reliant India, we must achieve energy independence.”

US Secretary of State Marco Rubio, in a statement congratulating India’s Independence Day, said the relations between the two nations were “consequential and far-reaching”, and wanted to “ensure a brighter future for both”.

Blood and water

Modi urged scientists and engineers to focus on building key sectors and technologies including fighter jet engines, semiconductor chips and military hardware systems.

“We will have India-made semiconductor chips in the market by the year’s end,” Modi said.

He added that the country was also working towards building a space station and would have a “defence shield” in the next decade, without giving further details.

Modi also honoured the Indian armed forces, which took part in a four-day conflict with arch-rival Pakistan that ended in a ceasefire on May 10.

“India will give a befitting reply to any other misadventure by the enemy,” he added, and referred to New Delhi’s suspension of its cross-border water sharing treaty with Pakistan.

“India has decided that blood and water will not flow together”, he added.

Modi did not speak directly about Trump, but said he would “stand like a wall” against any policy that hurts the interests of farmers.

Agriculture employs vast numbers of people in India and has been a key sticking point in trade negotiations.

“When economic selfishness is rising day by day… we must not just sit and worry about the crisis but instead focus on our strengths,” Modi said.



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China to build ‘birth-friendly society’, refine social security system

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China to build ‘birth-friendly society’, refine social security system


A man carries a child outside a childrens hospital in Beijing, China November 24, 2023. — Reuters
A man carries a child outside a children’s hospital in Beijing, China November 24, 2023. — Reuters

China said on Thursday it would build a “childbirth-friendly society” in the next five years, pledging to address concerns over employment, education, medical care, health and income, according to an official government report.

Authorities will improve population services and respond proactively on ageing, including “promoting high-quality, full employment, improving the income distribution system, and refining the social security system.”

They will also foster “positive attitudes towards marriage and childbearing,” the report said, adding that it would boost housing support for families with children.

China’s population fell for a fourth consecutive year in 2025, as the birth rate plunged to a record low, official data showed in January, with experts warning of further decline.

Policymakers have made population planning a key part of the country’s economic strategy and this year Beijing faces a total potential cost of around 180 billion yuan ($25.8 billion) to boost births, according to Reuters estimates.

Key costs are the national child subsidy, which was introduced for the first time last year, as well as a pledge that women throughout pregnancy have “no out-of-pocket expenses” in 2026, with all medical costs, including in vitro fertilisation (IVF), fully reimbursable under its national medical insurance fund.

Authorities will continue to implement the childcare subsidy system and expand demonstrations and trials for subsidised childcare services, the report said, without giving further details.

Services for women in early stages of pregnancy as well as reproductive health would be improved while authorities aimed to better prevent and treat birth defects.

Authorities will also refine policies on free preschool education and increase the supply of regular senior secondary school places, with government spending on education mandated to be higher than 4% of GDP, the report said.

Developing the ‘silver economy’

China’s population has been shrinking since 2022 and is ageing rapidly, complicating Beijing’s plan to boost domestic consumption and rein in debt.

New policies will be introduced to promote “high-quality development of the silver economy”, targeted at those aged 60 and older, with elderly care services to be increased, particularly in rural areas, the report said.

Authorities will also draw up measures to refine supportive policies designed for seniors including pension finance, wellness and care, it said.

By 2035, the number of Chinese over-60s is set to hit 400 million – roughly equal to the populations of the US and Italy combined – meaning hundreds of millions of people are set to leave the workforce at a time when pension budgets are already stretched.

China has already increased retirement ages, with men now expected to work until they are 63 rather than 60, and women until they are 58 rather than 55.





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US Senate Rejects Resolution to Limit Trump’s Iran War Powers

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US Senate Rejects Resolution to Limit Trump’s Iran War Powers



WASHINGTON: The United States Senate has rejected a resolution aimed at limiting President Donald Trump’s authority to continue military strikes against Iran.

The bipartisan measure, introduced by Tim Kaine and Rand Paul, sought to require the withdrawal of US forces from hostilities with Iran unless Congress formally authorized the campaign.

However, the resolution failed in a 53–47 vote, reflecting strong support from Republican lawmakers for the president’s military actions.

Debate Over War Powers

Democratic lawmakers argued that the president had bypassed Congress by ordering airstrikes on Iran without prior authorization.

Senator Tim Kaine said that classified briefings provided to lawmakers did not present evidence of an imminent threat from Iran to the United States.

Republicans, meanwhile, defended the military action, saying Iran had long posed a threat to US forces and interests in the region.

Growing Conflict in the Middle East

The vote comes amid an escalating conflict following US-Israeli strikes on Iran, which triggered retaliatory missile and drone attacks across the Gulf region.

The conflict has already resulted in the deaths of senior Iranian officials, including Ali Khamenei, and casualties among US troops stationed in the Middle East.

War Powers Act

The resolution invoked the War Powers Resolution, a law passed after the Vietnam War to limit the president’s ability to conduct military operations without congressional approval.

Even if the measure had passed both the Senate and the House of Representatives, President Trump could have vetoed it, requiring a two-thirds majority.



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Document reveals Pentagon sought 13 critical minerals day before Iran strike

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Document reveals Pentagon sought 13 critical minerals day before Iran strike


A general view of the Pentagon on the day that at least 30 news organizations declined to sign a new Pentagon access policy for journalists, at the Pentagon in Washington, D.C., US, October 15, 2025.  — Reuters
A general view of the Pentagon on the day that at least 30 news organizations declined to sign a new Pentagon access policy for journalists, at the Pentagon in Washington, D.C., US, October 15, 2025.  — Reuters

The US military asked mining companies last Friday to help boost domestic supplies of 13 critical minerals used to make semiconductors, weapons and other products, a document reviewed by Reuters showed.

The request, the day before the US and Israel launched strikes on Iran, is the latest example of Washington’s push for more access to the materials used widely in warfare.

The Pentagon asked members of the Defence Industrial Base Consortium (DIBC), a group of more than 1,500 companies, universities and others that supply the military, for proposals to be submitted by March 20 for projects that could mine, process or recycle select minerals, the document showed.

While the DIBC has worked on minerals-related issues for some time, there was no immediate indication as to whether the timing was intentionally coordinated to coincide with the start of the strikes on Iran.

The list of 13 minerals sought includes arsenic, bismuth, gadolinium, germanium, graphite, hafnium, nickel, samarium, tungsten, vanadium, ytterbium, yttrium and zirconium.

The US is reliant on imports for most of the 13. China is a dominant global producer of all of them.

DIBC member Guardian Metal Resources plans to apply for funding for its two tungsten projects in Nevada, said J.T. Starzecki, the company’s executive chairman. Tungsten is used to harden steel and China is the world’s largest producer.

“This is the opportunity we’ve been waiting for,” Starzecki told Reuters. “Our plan is to look for an application that would give us a funding package to allow us to get to full production at both sites.”

American Tungsten, which is developing an Idaho mine for that metal, plans to apply for funding next week that would complement a loan it has applied for from the US Export-Import Bank, said CEO Ali Haji.

The Pentagon asked for detailed information on the costs, including labour and material, needed to build a mine or processing facility. Projects could be awarded development funds ranging from $100 million to over $500 million, according to the request.

The document did not specify why only those 13 minerals were chosen. Some — including germanium, graphite and yttrium — have been subject to export restrictions by China, the top global producer.

Yttrium shortages, especially, have set off alarm bells throughout the aerospace industry. One of the 17 rare earths, yttrium is used in coatings that keep engines and turbines from melting at high temperatures. Without regular application of these coatings, engines cannot be used.

Colorado-based Energy, also a DIBC member, said it is developing facilities to process gadolinium and samarium by 2027, and is considering processing yttrium.

“The domestic supply of critical minerals remains essential to safeguarding both national security and economic stability,” said Mark Chalmers, the Energy Fuels CEO.

Nickel is a widely traded metal and Indonesia is the top global producer. Yet Jakarta has been throttling exports of the metal used widely in stainless steel and battery production.

The White House, DIBC and Pentagon did not immediately respond to requests for comment.

Latest request

DIBC’s request is just the latest attempt by the Trump administration to increase US supply of key critical minerals. China has been using its market control as diplomatic leverage in ongoing trade disputes with Washington.

Last month, Trump officials launched a $12 billion minerals stockpile backed by the US Export-Import Bank and proposed a preferential minerals trading bloc with more than 50 allies.

That trading bloc would aim to use reference prices for minerals derived in part by a Pentagon-created artificial intelligence programme, Reuters reported last week.

The administration has also taken equity stakes in rare earths miner MP Materials, Lithium Americas, and copper-and-cobalt developer Trilogy Metals.

Separately on Wednesday, the Defence Logistics Agency, which buys a range of goods for the US military, asked for information from miners on potentially acquiring lithium, chromium and tellurium for military stockpiles.





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