Trump imposes additional 25 percent tariff on Indian goods, relations hit new low

Trump imposes additional 25 percent tariff on Indian goods, relations hit new low
US President Donald Trump gestures as he walks to board Air Force One, at Joint Base Andrews in Maryland, US, on April 25, 2025. (REUTERS/File)
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Trump imposes additional 25 percent tariff on Indian goods, relations hit new low

Trump imposes additional 25 percent tariff on Indian goods, relations hit new low
  • US imposes tariff citing New Delhi’s continue imports of Russian oil
  • Move expected to hit key Indian export sectors including textiles, footwear

US President Donald Trump on Wednesday issued an executive order imposing an additional 25 percent tariff on Indian goods citing New Delhi’s continued imports of Russian oil, sharply escalating tensions between the two countries after trade talks collapsed.

The new measure raises tariffs on some Indian goods to as high as 50 percent — among the steepest faced by any US trading partner.

The move is expected to hit key Indian export sectors including textiles, footwear, and gems and jewelery and marks the most serious downturn in US-India relations since Trump returned to office in January.

It also comes as Indian Prime Minister Narendra Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as ties with Washington fray.

“India will take all actions necessary to protect its national interests,” India’s external affairs ministry said in a statement, saying it was “extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”

It said India’s imports were based on market factors and aimed at energy security for its population of 1.4 billion.

Trade analysts warned the tariffs could severely disrupt Indian exports. The additional 25 percent tariff comes into effect 21 days after August 7, the order said.

“With such obnoxious tariff rates, trade between the two nations would be practically dead,” said Madhavi Arora, economist at Emkay Global.

Indian officials have privately acknowledged growing pressure to return to the negotiating table. A potential compromise could involve a phased reduction in Russian oil imports and diversification of energy sources.

A senior Indian official said New Delhi was blindsided by the sudden imposition of the new levy and the steep rate, as both countries continue to discuss trade issues.

Trump’s decision follows five rounds of inconclusive trade negotiations, which stalled over US demands for greater access to Indian agriculture and dairy markets.

India’s refusal to curb Russian oil purchases — which surged to a record $52 billion last year — ultimately triggered the tariff escalation.

“Exports to the US become unviable at this rate. Clearly, risks to growth and exports are rising, and the rupee may face renewed pressure,” said Garima Kapoor, economist at Elara Securities. “Calls for fiscal support are likely to intensify.”

Trump’s executive order does not mention China, which also buys Russian oil. A White House official had no immediate comment on whether an additional order covering those purchases would be forthcoming.

US Treasury Secretary Scott Bessent last week said he warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress, but was told that Beijing would protect its energy sovereignty.

The US and China have been engaged in discussions about trade and tariffs, with an eye to extending a 90-day tariff truce that is due to expire on August 12, when their bilateral tariffs shoot back up to triple-digit figures. 


White House says Trump open to meeting Putin and Zelensky

Updated 5 sec ago

White House says Trump open to meeting Putin and Zelensky

White House says Trump open to meeting Putin and Zelensky
The meeting could take place as early as next week, The New York Times newspaper reported
The possibility was discussed in a call between Trump and Zelensky

WASHINGTON: US President Donald Trump is open to meeting with Russian counterpart Vladimir Putin and Ukraine’s Volodymyr Zelensky, the White House said Wednesday.

The meeting could take place as early as next week, The New York Times newspaper reported, citing unnamed sources.

The possibility was discussed in a call between Trump and Zelensky that, according to a senior Ukrainian source, also included NATO Secretary General Mark Rutte and the leaders of Britain, Germany and Finland.

It came after Washington’s envoy Steve Witkoff visited Moscow for talks with Putin earlier in the day.

“The Russians expressed their desire to meet with President Trump, and the president is open to meeting with both President Putin and President Zelensky,” said White House Press Secretary Karoline Leavitt.

The New York Times reported that Trump intended to meet first with Putin, and then to follow that up with a three-way meeting involving the Russian and Ukrainian leaders.

NATO and Ukrainian officials did not confirm the report when contacted by AFP.

Earlier on Wednesday, Trump hailed the meeting between his envoy and Putin as “highly productive,” but US officials said sanctions would still be imposed on Moscow’s trading partners.

Trump, who had boasted he could end the conflict within 24 hours of taking office, has given Russia until Friday to make progress toward peace or face new penalties.

Israel’s Unit 8200 used Microsoft cloud to store ‘a million calls an hour’ of Palestinian phone conversations

Israel’s Unit 8200 used Microsoft cloud to store ‘a million calls an hour’ of Palestinian phone conversations
Updated 06 August 2025

Israel’s Unit 8200 used Microsoft cloud to store ‘a million calls an hour’ of Palestinian phone conversations

Israel’s Unit 8200 used Microsoft cloud to store ‘a million calls an hour’ of Palestinian phone conversations
  • In Gaza, intelligence from phone calls in Azure was reportedly used by Unit 8200 to identify bombing targets
  • The Israeli military used information stored in Azure to blackmail individuals, detain them or justify killings afterward
  • Sources described the system as indiscriminate and intrusive, labeling it as a tool that turned an entire population into an ‘enemy’

LONDON: Israel’s military surveillance agency, Unit 8200, has used Microsoft Azure cloud services to store recordings of millions of mobile phone calls made daily by Palestinians in Gaza and the West Bank since 2022.

The cloud-based storage platform has enabled the execution of lethal Israeli airstrikes and has influenced military operations in Gaza and the West Bank, according to a joint investigation by The Guardian, the Israeli-Palestinian publication +972 Magazine and the Hebrew-language outlet Local Call.

After a meeting in late 2021 between Yossi Sariel, the head of Unit 8200, and Satya Nadella, Microsoft’s chief executive, work commenced on a customized, segregated area within the Microsoft Azure cloud platform for the Israeli intelligence agency to store a vast archive of daily communications from Palestinians.

Unit 8200, the rough equivalent of the US’ National Security Agency, had determined that the Israeli military’s servers lacked the necessary storage space and computing power to handle the volume of phone calls from an entire population — about 3 million Palestinians in the West Bank and another 2.3 million in Gaza.

Sources revealed that the “a million calls an hour” mantra that spread within Unit 8200 captured the project’s scale, using Azure’s near-limitless storage capacity to collect and store recordings of millions of Palestinians.

The new system allowed intelligence officers to store and replay the content of cellular calls made by Palestinians, uncovering conversations from a wider pool of ordinary civilians. Sources described the system as indiscriminate and intrusive, labeling it as a tool that turned an entire population into an “enemy.”

Israel controls the telecommunications networks in both the West Bank and the Gaza Strip. However, the latter has been severely damaged by Israel’s military campaign that began in late 2023, which has resulted in the killing of more than 60,000 Palestinians, including 18,000 children.

In Gaza, intelligence from phone call data in Azure was reportedly used by Unit 8200 to identify bombing targets. Officers would analyze calls from Palestinian individuals nearby when planning airstrikes in densely populated areas with many civilians, sources said.

Microsoft is under pressure from both employees and investors regarding its links to Israel’s military and the role its technology plays in Gaza. In May, an employee interrupted a keynote speech by Nadella, shouting: “How about you show how Israeli war crimes are powered by Azure?”

In 2022, the system initially focused on the West Bank, which is under Israeli military occupation. Sources from Unit 8200 said that the information stored in Azure served as a rich intelligence source, and that the Israeli military used it to blackmail individuals, detain them or justify killings afterward.

“When they need to arrest someone and there isn’t a good enough reason to do so, that’s where they find the excuse,” one said, referring to the information stored in the Microsoft cloud.

By July this year, about 11,500 terabytes of Israeli military data, roughly 200 million hours of audio, was stored on Microsoft’s Azure servers in the Netherlands, with some in Ireland. It is unclear if all the data is from Unit 8200 or other Israeli military units, sources said.

During the development of the system, Microsoft and Unit 8200 engineers collaborated to implement advanced security measures in Azure, in order to meet the Israeli unit’s standards. The project was highly secretive, with Microsoft staff instructed not to mention Unit 8200, which informed Microsoft that it planned to gradually migrate up to 70 percent of its data to the cloud, including both secret and top-secret information.

“The rhythm of interaction with (the unit) is daily, top down and bottom up,” one leaked document said.

Microsoft responded to the report, saying: “At no time during this engagement ... has Microsoft been aware of the surveillance of civilians or collection of their cellphone conversations using Microsoft’s services, including through the external review it commissioned.”

It added that its “engagement with Unit 8200 has been based on strengthening cybersecurity and protecting Israel from nation state and terrorist cyberattacks”.

Sariel resigned late last year after leading Unit 8200 since early 2021. He is described as a tech evangelist who adopted a vision of military and intelligence agencies migrating to the cloud.

He reportedly accepted responsibility for Unit 8200’s role in the intelligence and operational failure that led to the Hamas-led attack on Israel on Oct. 7, 2023, which resulted in the deaths of 1,200 people and the abduction of almost 240 others.

He declined to comment on the report. An Israeli military spokesperson told The Guardian that its work with Microsoft was based on “legally supervised agreements.”

It added: “The IDF operates in accordance with international law, with the aim of countering terrorism and ensuring the security of the state and its citizens.”


US should recognize Palestinian state, congressman tells Arab News

US should recognize Palestinian state, congressman tells Arab News
Updated 06 August 2025

US should recognize Palestinian state, congressman tells Arab News

US should recognize Palestinian state, congressman tells Arab News
  • Democrat Mike Quigley ‘deeply horrified’ by ‘genocide’ in Gaza
  • Israel’s govt includes ‘the farthest right, evil, dark people’ advocating ‘ethnic cleansing’

CHICAGO: Illinois Congressman Mike Quigley on Wednesday called on the US to recognize a Palestinian state, and expressed concern over Israel’s killing of Palestinian Americans and the lack of media reporting on their deaths.

Their sacrifices and Israel’s “genocide” in Gaza are fueling a new push for peace, the Democrat — elected in 2009 — told Arab News.

A dozen House Democrats signed a draft letter on Monday calling for US recognition of Palestinian statehood.

A member of the House Permanent Select Committee on Intelligence and co-chair of the Ukraine Caucus, Quigley said he is “deeply horrified” by the reports and images coming out of Gaza.

“How war is comported is as important as the reasons you fight the war, and at some point you just have to disagree with your friends and tell them, ‘This has to stop,’” he said, adding that the conflict and the killing of Palestinian Americans are impacting US public opinion. 

“A lot of my colleagues … want to support Israel, a critical ally … but they’re struggling and agonized,” Quigley said, adding that the rhetoric from Israel’s government and the deaths in Gaza have “dramatically” changed how Americans view the conflict.

Prime Minister Benjamin Netanyahu has “emboldened” extremists, Quigley said, adding that Israel’s government includes “the farthest right, evil, dark people who are talking about things that can only be described as ethnic cleansing.”

Quigley continued: “One of the greatest values in being viewed as a moderate is that when I say something, at this point, hopefully it can carry more weight. That’s what I’m hoping.” He said the conflict is a “wake-up call” for everyone, including Israelis.

Quigley called for the immediate shutting down of the Gaza Humanitarian Foundation, which is backed by Israel and the US, and has come under increased criticism for the killing of Palestinians at many of its distribution sites.

GHF operations “violate fundamental humanitarian principles,” and the foundation “has proven incapable of safely delivering the humanitarian aid necessary to prevent mass starvation,” he said.

“All future aid provided by the US to Israel must face stringent oversight and review,” he added, denouncing the “serious escalation” in violence by Israeli settlers in the occupied West Bank, where hundreds of Palestinians have been killed in the past two years, including five US citizens.

“Israeli settler encroachment in the West Bank should come to an immediate end, violations and violence must be prosecuted fully by the Israeli government, and the US government should sanction all perpetrators of this instability,” Quigley said.

“Israelis and Palestinians will never be secure if the Israeli government continues to prevent the Palestinian people from having basic rights and dignity, with a state of their own, alongside Israel.”


India’s Modi to visit China for first time in 7 years as tensions with US rise

India’s Modi to visit China for first time in 7 years as tensions with US rise
Updated 06 August 2025

India’s Modi to visit China for first time in 7 years as tensions with US rise

India’s Modi to visit China for first time in 7 years as tensions with US rise
  • Modi will go to China for a summit of the multilateral Shanghai Cooperation Organization that begins on Aug. 31
  • Modi and Chinese President Xi Jinping held talks on the sidelines of a BRICS summit in Russia in October

NEW DELHI: Indian Prime Minister Narendra Modi will visit China for the first time in over seven years, a government source said on Wednesday, in a further sign of a diplomatic thaw with Beijing as tensions with the United States rise.

Modi will go to China for a summit of the multilateral Shanghai Cooperation Organization that begins on Aug. 31, the government source, with direct knowledge of the matter, told Reuters. India’s foreign ministry did not immediately respond to a request for comment.

His trip will come at a time when India’s relationship with the US faces its most serious crisis in years after President Donald Trump imposed the highest tariffs among Asian peers on goods imported from India, and has threatened an unspecified further penalty for New Delhi’s purchases of Russian oil.

Modi’s visit to the Chinese city of Tianjin for the summit of the SCO, a Eurasian political and security grouping that includes Russia, will be his first since June 2018. Subsequently, Sino-Indian ties deteriorated sharply after a military clash along their disputed Himalayan border in 2020.

Modi and Chinese President Xi Jinping held talks on the sidelines of a BRICS summit in Russia in October that led to a thaw. The giant Asian neighbors are now slowly defusing tensions that have hampered business relations and travel between the two countries.

Trump has threatened to charge an additional 10 percent tariff on imports from members — which include India — of the BRICS group of major emerging economies for “aligning themselves with Anti-American policies.”

Trump said on Wednesday his administration would decide on the penalty for buying Russian oil after the outcome of US efforts to seek a last-minute breakthrough that would bring about a ceasefire in the war in Ukraine.

Trump’s top diplomatic envoy Steve Witkoff is in Moscow, two days before the expiry of a deadline the president set for Russia to agree to peace in Ukraine or face new sanctions.

Meanwhile, India’s National Security Adviser Ajit Doval is in Russia on a scheduled visit and is expected to discuss India’s purchases of Russian oil in the wake of Trump’s pressure on India to stop buying Russian crude, according to another government source, who also did not want to be named.

Doval is likely to address India’s defense cooperation with Russia, including obtaining faster access to pending exports to India of Moscow’s S400 air defense system, and a possible visit by President Vladimir Putin to India.

Doval’s trip will be followed by Foreign Minister Subrahmanyam Jaishankar in the weeks to come.

EXPORT IMPACT
US and Indian officials told Reuters a mix of political misjudgment, missed signals and bitterness scuttled trade deal negotiations between the world’s biggest and fifth-largest economies, whose bilateral trade is worth over $190 billion.

India expects Trump’s crackdown could cost it a competitive advantage in about $64 billion worth of goods sent to the US that account for 80 percent of its total exports, four separate sources told Reuters, citing an internal government assessment.

However, the relatively low share of exports in India’s $4 trillion economy is expected to limit the direct impact on economic growth.

On Wednesday, the Reserve Bank of India left its GDP growth forecast for the current April-March financial year unchanged at 6.5 percent and held rates steady despite the tariff uncertainties.

India’s government assessment report has assumed a 10 percent penalty for buying Russian oil, which would take the total US tariff to 35 percent, the sources said.

India’s trade ministry did not immediately respond to a request for comment.

The internal assessment report is the government’s initial estimate and will change as the quantum of tariffs imposed by Trump becomes clear, all four sources said.

India exported goods estimated at around $81 billion in 2024 to the US.


Indian hotel suppliers plan to use Jeddah expo to enter Saudi market

Indian hotel suppliers plan to use Jeddah expo to enter Saudi market
Updated 06 August 2025

Indian hotel suppliers plan to use Jeddah expo to enter Saudi market

Indian hotel suppliers plan to use Jeddah expo to enter Saudi market
  • Jeddah hosts 2025 Hotel and Restaurant Supplies Expo from Dec. 9-11
  • Event will feature ‘Made in India’ display to spotlight Indian hospitality goods 

NEW DELHI: Indian hotel suppliers are planning to display their products at a supplies expo in Jeddah in December, as they seek to enter the growing Saudi hospitality market. 

The Saudi port city is hosting the 2025 Hotel and Restaurant Supplies Expo from Dec. 9-11. This will be the seventh edition of the exhibition, which connects international suppliers with hospitality players in the Kingdom. 

For the first time, the event will feature a “Made in India” showcase to highlight India’s role as a “rapidly emerging” and “go-to” sourcing hub for the global hospitality sector. 

“We are expecting high interest from Indian manufacturers to enter the Saudi market as India has the best quality with the manufacturing (of) hospitality (products),” Zeinab Ayoub, marketing manager of Jeddah-based exhibition organizer Wehdat Al-Ertikaz, told Arab News. 

Ayoub attended at the International Hospitality Expo in the Indian city of Greater Noida this week to encourage potential Indian suppliers to join the Jeddah expo in December. 

“Lots of exhibitors are interested to join the exhibition because they want to enter the Saudi market. For most of them it is the first time to enter , so this is an opportunity,” she said. 

“We have met lots of exhibitors from different categories; mattresses, F&B, horeca (hotels, restaurants, cafes) suppliers, tableware, textiles, hotel amenities.” 

Indian manufacturers see the Jeddah event as their opportunity to enter the Saudi market, especially after businesses from the Kingdom and the wider Gulf region showed interest for their products at the event in Noida. 

“If we get an opportunity to work with the Saudi people we will love to do that. We have got few clients, few enquiries from the Saudi people. There is another show that is happening in Jeddah and we are definitely going to participate in that show,” Pawan Kumar Verma, owner of 17 Nakshtra Art Works manufacturer, told Arab News. 

“Saudi is a big market, it’s a big lucrative market. Definitely we will look forward to seeing that market and we are very keen to work with the Saudi people … there are new hotels, upcoming hotels. So we will have good opportunities out there.” 

Under Vision 2030, aims to develop the tourism industry — its second largest after oil — to make the Kingdom one of the most prominent tourist destinations in the world. 

The government’s strategy appears to focus on building high-end properties, with global real estate consultancy Knight Frank expecting more than 58,000 new hotel rooms developed in the next five years. 

Yash Nagpal, owner of a mirror manufacturing company, sees the Saudi pivot to upscale properties as an opportunity for his products. 

“ has taken a lot of initiative towards tourism and all that. It is good to see a country improving in terms of tourism. It is helping us also that the hospitality industry is growing,” he told Arab News. 

“From the past few years it has been one of the main markets for Indian business exports … I would like to work with , even with the mirrors, we have a luxury feel, so (in line) with the n vibes.” 

Navneet Kamra, owner of Delhi-based Iris Hotel Craft, also sees the Saudi market as key to his business growth. 

“ is a good country, they are expanding. It’s a bigger opportunity for us. There is a huge demand in the coming years and we can fulfil,” he told Arab News. 

“Saudis are growing so we can also grow with them.”