Trump’s Tariff Shock Spurs India’s 'Swadeshi' Turn
With a 50% levy on Indian exports, Washington risks rupturing ties with New Delhi—while Modi seizes the moment to rally self-reliance and “Made in India” pride.
President Trump on Wednesday followed through on his threat to impose a 50 percent tariff on nearly all goods arriving from India, leveling one of his most punitive tariffs at a country with deep ties to the United States. The 50 percent rate, half of which is punishment for India’s buying Russian oil, is expected to damage many Indian exporters that collectively employ millions of people. The move could rupture America’s expanding economic relationship with India, where two-thirds of the largest U.S. corporations have offshore operations. The tariff also undermines the stability of billions of dollars of foreign investment in India’s stock market, the world’s fourth largest. The extraordinary levy puts India at a disadvantage in the new trading order Mr. Trump set in motion when he announced tariffs on dozens of countries in April. Mr. Trump has declared a truce with China, which ran a more than $1 trillion global surplus last year and is considered the principal antagonist in his trade war. In that context, the 50 percent tariff on India risks undermining a key strategy used more by American importers in recent years to shift production to India to lessen their dependency on Chinese factories. Recent weeks have brought a turnabout for India, which was confident that its importance to the United States and the rapport between its prime minister, Narendra Modi, and Mr. Trump would earn it a reprieve. But now India is alone with Brazil — led by a leftist president who has antagonized Mr. Trump directly — with 50 percent tariffs, higher than any other country - NYT
The tariff setback has sent the Indian government into firefighting mode. Earlier this month, Indian Prime Minister Narendra Modi made a promise to cut taxes to mitigate their economic impact. He has also urged domestic self-reliance.
He said that a Diwali gift in the form of a "massive tax bonanza" was on its way for the common man and the millions of small businesses that power Asia's third largest economy. Wearing a bright saffron turban and addressing crowds of spectators from the ramparts of Delhi's Red Fort during Independence Day celebrations, Modi also urged small shop owners and businesses to put up boards of "Swadeshi" or "Made in India" outside their stores. "We should become self-reliant - not out of desperation, but out of pride," he said. "Economic selfishness is on the rise globally and we mustn't sit and cry about our difficulties, we must rise above and not allow others to hold us in their clutches." He has since repeated these comments in at least two other public addresses this week - BBC
The imposition of 50 per cent tariffs on Indian goods should be a wake up call for New Delhi, which should not yield to global pressure, former Niti Aayog CEO and former G20 Sherpa Amitabh Kant said on Wednesday. In a post on X, Kant said it was quite “ironical” for the US to impose such levies on India, amid Washington’s continuous negotiations with Russia and China, even as Beijing remains the largest buyer of Moscow oil. “Trump’s tariffs must be a wake-up call for India. The irony is striking: the U.S. is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead,” he wrote. Minister of State for External Affairs, Kirti Vardhan Singh said, “Our economy is very strong, our industries are very strong, and we will certainly not let our country suffer…” Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla said, “Hopefully, we will find a way to conclude a satisfactory mutually beneficial Free Trade Agreement with the United States early rather than late and that would certainly take us to the next step of the visit of President Trump to India…” - Indian Express
"We should become self-reliant - not out of desperation, but out of pride. Economic selfishness is on the rise globally and we mustn't sit and cry about our difficulties, we must rise above and not allow others to hold us in their clutches” - Indian Prime Minister Narendra Modi
Denmark's foreign minister has summoned the top US diplomat in Copenhagen, following a report that American citizens have been conducting covert operations in Greenland. Denmark's public broadcaster DR quoted sources as saying the aim was to infiltrate Greenland's society and promote its secession from Denmark to the US, although it was unable to clarify who the men were working for. Danish intelligence warned Greenland was being targeted by "various kinds of influence campaigns". Foreign Minister Lars Lokke Rasmussen said "any attempt to interfere in the internal affairs of the Kingdom [of Denmark] will of course be unacceptable", and the US charge d'affaires had been summoned in that light. The BBC has approached the US embassy and the state department for comment. However, US President Trump has said several times he wants to annex Greenland, a semi-autonomous part of the Kingdom of Denmark, and Vice-President JD Vance has accused Copenhagen of underinvesting in the territory. On a visit to Greenland a few months ago, Danish Prime Minister Mette Frederiksen warned the US that "you cannot annex another country". Denmark's foreign minister said in a statement to the BBC that the government was "aware that foreign actors continue to show an interest in Greenland and its position in the Kingdom of Denmark". "It is therefore not surprising if we experience outside attempts to influence the future of the Kingdom in the time ahead," he added. Denmark is a member of Nato and the European Union and has long seen the US as one of its closest allies, and Danes have been shocked by Trump's determination to control its semi-autonomous territory. The US president said this year he would not rule out seizing it by force - BBC
The Taliban is reportedly "ready and willing" to work with Nigel Farage and accept Afghans deported from Britain under Reform UK's unprecedented new mass deportation plan. Reform leader Farage announced on Tuesday new plans to deport a staggering 600,000 illegal migrants within five years of a Reform government, which would mean deporting 300 people a day. Farage said his government would negotiate returns agreements with countries including Iran, Eritrea and Afghanistan, which is governed by the Taliban. The Taliban, a militant group that first took power in Afghanistan in the 1990s, was accused by the United States of harbouring fighters belonging to al-Qaeda after the 9/11 attacks. In late 2001, the US and its close allies invaded Afghanistan, which has remained in a state of turmoil and instability ever since. Reform's Zia Yusuf said on Wednesday it would be "quite reasonable" to pay the Taliban to take deported illegal migrants. The Telegraph reported that a senior Taliban official based in Kabul said: "We are ready and willing to receive and embrace whoever he [Farage] sends us. “We are prepared to work with anyone who can help end the struggles of Afghan refugees, as we know many of them do not have a good life abroad." The official reportedly said: "We will not take money to accept our own people, but we welcome aid to support newcomers, since there are challenges in accommodating and feeding those returning from Iran and Pakistan. "Afghanistan is home to all Afghans, and the Islamic Emirate is determined to make this country a place where everyone – those already here, those returning, or those being sent back from the West by Mr Farage or anyone else – can live with dignity." Responding to the official's comments, Yusuf said: "Reform continues to show the way. If only this awful [Labour] government would step aside." The Taliban official also reportedly suggested Farage may be easier to work with than the Labour government - Middle East Eye
Ukraine acknowledged for the first time on Tuesday that Russia’s army had entered the Dnipropetrovsk region, a central administrative area previously spared from intense fighting. “Yes, they have entered, and fighting is ongoing as of now,” said Viktor Tregubov, a spokesperson for Ukrainian forces in Dnipro, Ukraine’s fourth-largest city. Russian forces have slowly gained ground in costly battles for largely devastated areas in eastern and southern Ukraine, normally with few inhabitants or intact buildings left.
The United States has said it is prepared to provide intelligence support as part of potential security guarantees for Ukraine and to contribute to the creation of a European-led air shield for the country. The FT has reported that US officials told their European counterparts during discussions on security guarantees for Ukraine that Washington would be prepared to contribute "strategic enablers".
These include intelligence, surveillance and reconnaissance (ISR), command and control assets, and air defence systems to support any deployment of European forces in Ukraine. The FT’s sources added that for post-war security guarantees, the US may provide its own aircraft, logistics and ground-based radars, "supporting and enabling a European-enforced no-fly zone and air shield" for Ukraine. The US offer may still be withdrawn, and its implementation will depend on European countries’ willingness to deploy "tens of thousands" of troops in Ukraine, the FT said.
Ukrainian men aged 18 to 22 are now allowed to cross the border freely in either direction under martial law, the prime minister, Yulia Svyrydenko, has announced. “This applies to all citizens in this age group. The decision also concerns citizens who, for various reasons, are located outside Ukraine,” said Svyrydenko. “We want Ukrainians to maintain a maximum of links with Ukraine.” Previous regulations introduced after Russia’s February 2022 invasion barred men aged 18-60 from leaving the country - The Guardian
Ukrainian Prime Minister Yulia Svyrydenko has told RFE/RL's Ukrainian Service that her brother is living abroad, a potentially damaging revelation as the country's army struggles to find new military recruits amid Russia's ongoing invasion. Kyiv has barred men between 18 and 60 years of age from leaving the country since Russia began the full-scale war in February 2022. RFE/RL approached Svyrydenko while she was walking at an event in Kyiv on August 25 and asked if it was true that her brother, Vitaliy, had left Ukraine during the war. Svyrydenko continued walking and said "He did not leave during the full-scale war." Asked repeatedly if he left before the war and he had not returned, a visibly uncomfortable Svyrydenko did not at first reply but eventually said "he's living abroad." Documents show Vitaliy Svyrydenko rented a property in London in August 2022. Although Svyrydenko's comments do not suggest any legal violations, the case feeds into ongoing debates in wartime Ukraine about how fairly travel restrictions are being enforced and demands for political transparency - RFE/RL
Watch my live interview on BBC World Television from early this morning, where we led with my hot take analysis on reported Russian advances in Dnipropetrovsk Oblast.
ExxonMobil held secret talks with Russia’s state energy company Rosneft this year about potentially returning to operations in Russia, specifically the Sakhalin-1 oil and gas project. The discussions are reported to be contingent on the U.S. and Russia giving the green light as part of a broader Ukraine peace process. This potential return would mark a significant shift after Exxon exited Russia in 2022 following Western sanctions and the outbreak of the war in Ukraine on February 24, 2022. The talks reportedly took place in a confidential setting and involved senior executives from both companies. Any return would face scrutiny due to sanctions and geopolitical concerns, but the discussions indicate possible energy cooperation could be part of peace negotiation incentives between the U.S. and Russia. This development was reported by the Wall Street Journal and cited people familiar with the discussions. It reflects ongoing efforts by officials from both countries to explore energy deals alongside diplomatic negotiations aimed at resolving the Ukraine conflict - Eurasia Business News
The European Union hit back at US threats of renewed tariffs over Brussels’ digital regulations, an early test of a recently unveiled framework trade deal. US President Donald Trump this week warned of “substantial” potential duties if overseas legislation affected American tech companies, an obvious reference to Europe, while Reuters reported the White House was weighing visa restrictions on EU officials. Trump’s missive fueled renewed frustration within Europe: Several politicians have grumbled that last week’s announced trade deal was one-sided towards Washington, and calls are growing to unleash the EU’s “trade bazooka” — a response it conceived during Trump’s first term allowing it to impose a huge array of economic sanctions if it is being coerced by another power - Semafor
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