Daily Briefing: Tariff trouble and a snooping scandal

On that note, let’s get to the rest of today’s edition.

🚨 Big Story

Sowing fresh mayhem, US President Donald Trump has doubled the tariffs on Indian goods to 50 per cent — the highest worldwide, and at par with fellow BRICS member Brazil. Trump had earlier announced a 25 per cent tariff, which comes into effect today (August 7). He has offered a 21-day window before the additional 25 per cent tariff kicks in. India has criticised the action as “unfair, unjustified and unreasonable”. The government said it would take “all actions necessary” to “protect its national interests”.

Briefly: The additional tariffs were prompted by India’s purchase of Russian oil, an issue that has triggered a volley of criticism from the US and other Western nations. India, in response, has flagged the US and the EU’s continued trade with Russia. It also stated that the US had earlier endorsed its purchase of Russian oil to stabilise the global market.

Red line: In reprimanding India, Trump has issued a warning to other countries. The latest executive order states that senior Trump administration officials can recommend action against countries importing Russian oil “directly or indirectly”, including the additional ad valorem import duty of 25 per cent. It is believed that by targeting Russia’s trading partners, Trump hopes to force the Kremlin’s hand in ending the war in Ukraine, now in its fourth year.

Looking ahead… With trade already dampened due to the tariff-related uncertainty, exporters warn that India cannot absorb the higher rates. Moreover, India loses its edge over most competitors, including China, Bangladesh and Vietnam. Notably, China is the largest buyer of Russian oil. Beijing is already in advanced stages of its negotiations with the US, and there are fears that it might buy concessions to escape the secondary tariffs.

Meanwhile, India’s own trade deal with the US has been stuck on New Delhi’s refusal to open up sensitive sectors, such as agriculture, to the US. Interestingly, though, as my colleague Harish Damodaran reports, trade in farm produce between the two countries is booming and poised to touch a new record this year.

📰 From the Front Page

Tragic: Flash floods and a debris avalanche on Tuesday have ravaged the town of Uttarkashi in Uttarakhand. At least 60 people are estimated to be missing, while two bodies have been recovered so far. Rescue operations are underway, complicated by heavy rains lashing the state. Dharali, the ground zero of the flash floods, is located in the fragile Bhagirathi eco-sensitive zone. Experts believe that unregulated activities, like construction on the river floodplains, could have worsened the disaster.

🎧 For more on the Uttarkashi floods, tune in to the latest ‘3 Things’ podcast episode.

Neighbourhood walk: Prime Minister Narendra Modi may be set to visit China after a long span of seven years for the Shanghai Cooperation Organisation (SCO) summit, scheduled from August 31 to September 1. The meeting comes as India and China look to improve ties, especially in the face of rising tensions with the US.

📌 Must Read

A nightmare? The Special Intensive Revision (SIR) of Bihar’s electoral rolls, just months away from the Assembly elections, has set off a political storm. RJD leader Tejashwi Prasad recently said that his party could “consider boycotting” the polls altogether, while the Congress said “every option” is open for discussion. In our Opinion pages today, former Chief Election Commissioner of India, S Y Quraishi, writes why boycotting elections is a “political blunder”. “…in a democracy, absence is not protest — it is abdication.”

Fraud trail: Industrialist Anil Ambani is once again under the scrutiny of investigative agencies, five years after he was questioned in the Yes Bank loan fraud case. The Enforcement Directorate suspects that thousands of crores of rupees, obtained in loans, were diverted to group companies and shell firms, bypassing norms. We explain the ED’s case and actions against Ambani.

⏳ And Finally…

While Saiyaara has been a hit at the Box Office, with fans crying (literally) in theatres, Dhadak 2’s success has paled in comparison. But in his weekly column, ‘Post Credits Scene‘, my colleague Rohan Naahar writes that Dhadak 2 may be the best Karan Johar production since Jigra. In an unusual comparison, Naahar writes that Shazia Iqbal’s newest venture has more in common with Joaquin Phoenix’s billion-dollar-grossing Joker movie than you’d imagine.

That’s all for today, folks! Until tomorrow,
Sonal Gupta

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