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Amid escalating tensions with the US over tariffs, PM Modi asserts India “will never compromise on the interests of its farmers, livestock rearers and fisherfolk”; world leaders condemn Israel’s plan to occupy Gaza City, while Germany suspends weapons delivery to the Jewish nation; PM Modi describes the Philippines as an “important partner” in India’s Act East Policy and ‘MAHASAGAR’ vision – here is weekly roundup of key global news.
India has issued a calibrated response after US President Donald Trump escalated tensions between the two countries by doubling tariffs on Indian goods to 50 per cent, the highest globally and at par with fellow BRICS member Brazil, even as trade talks appeared to hit a dead end.
A 25 per cent tariff earlier announced by Trump has come into effect on August 7, while he offered a 21-day window before the additional 25 per cent tariff kicks in. New Delhi criticised the unilateral move as “unfair, unjustified and unreasonable”, with Prime Minister Narendra Modi asserting that India “will never compromise on the interests of its farmers, livestock rearers and fisherfolk”.
Notably, India-US trade talks have remained in a deadlock over the red lines Delhi has drawn around the dairy and agriculture sectors as well as genetically modified (GM) crops. In this context, India’s last-minute withdrawal in 2019 from joining the Regional Comprehensive Economic Partnership (RCEP), a mega regional pact and the most expansive regional trade agreement the country had ever negotiated, is a case in point.
Meanwhile, Indian exporters are in a fix, scrambling to retain access to the US, their most valuable export market, accounting for nearly 20 per cent of India’s total outbound shipments. The situation is further compounded by concerns over the carefully built India-US partnership.
Russian oil import a pretext?
Trump’s additional tariffs on Indian goods were supposedly prompted by India’s purchase of Russian oil, which, according to the Trump administration, is “fuelling Russia’s war machine”.
However, the claim drove some experts to raise questions over those fuelling “Israel’s war machine”. According to the Stockholm International Peace Research Institute (SIPRI), the US accounted for 69 per cent of Israel’s imports of major conventional arms between 2019 and 2023.
Nonetheless, Russia has criticised Trump’s tariff action and backed India’s right to choose its trading partners. In a phone conversation on Friday (August 8), Prime Minister Modi and Russian President Vladimir Putin reaffirmed their “commitment to further deepen the India-Russia Special and Privileged Strategic Partnership”. Putin is to visit India later this year.
Moreover, Trump’s warning to countries buying Russian oil directly or indirectly has appeared to upset the US’s apple cart. Following Trump’s warning, India turned the spotlight back to the commencement of the Ukraine conflict, and highlighted that “the US at that time actively encouraged such imports [oil] by India for strengthening global energy markets stability”.
In addition, New Delhi also flagged the US and the EU’s continued trade with Russia. For instance, The Indian Express reported that US imports from Russia had been rising, growing 23 per cent year-on-year to $2.1 billion between January and May this year. The surge was led by a sharp increase in the import of palladium (37%), uranium (28%) and fertilisers (21%).
China: largest buyer of Russian oil
Although China – not India – is the largest buyer of Russian oil, questions arise over Trump’s actions on Beijing. In 2024, China imported $62.6 billion worth of Russian oil, compared to India’s $52.7 billion.
Notably, India has also started scaling back Russian oil purchases. In July, Russian oil imports were at 1.6 million barrels per day (bpd), down 24 per cent from June levels, and 23.5 per cent from volumes delivered in July of last year, according to the latest tanker data from global real-time data and analytics provider Kpler.
But Trump’s unwillingness to criticise China prompted speculation. South China Morning Post says rare earths have become a lever for Beijing in reducing Washington’s tariffs. By some estimates, limits on access to these minerals could affect nearly 78 per cent of all Pentagon weapons systems, it adds.
In the meantime, all eyes are on the two crucial meetings – first, the one between Trump and Putin on Friday (August 15). Second, Prime Minister Modi is likely to attend the Shanghai Cooperation Organisation (SCO) Summit in Tianjin from August 31 to September 1.
On the sidelines of the Summit, if the visit materialises, Modi is also expected to hold bilateral talks with Chinese President Xi Jinping, a meeting that will take place amid rising tensions with the US over trade tariffs and the purchase of Russian oil.
In this context, the notion of “mercenary multipolarity” may offer some perspectives. Julian Gewirtz, in his review essay How China Wins, published in Foreign Affairs, described mercenary multipolarity as “a transformed international order centered on self-interested great powers that generally disdain using their influence to benefit or cooperate with others and are primarily concerned with maximizing their own security, prosperity, and power.”
Amid starvation deaths, indiscriminate killings, and mass displacement of Palestinians during Israel’s war on Gaza which has lasted nearly two years, the Jewish state has announced its plan to occupy the Gaza City, prompting condemnation from world leaders.
Israel’s security cabinet on Friday (August 8) approved a plan to seize control of Gaza City, triggering concerns over “forced displacement, killings, and massive destruction”, as well as stirring fears for Israeli hostages still held in the Gaza Strip by Hamas.
Israel has said it currently has control over 75 per cent of Gaza, while the UN estimates some 86 per cent of the territory is either in militarised zones or under evacuation orders.
Israel’s 22-month war has killed over 61,000 Palestinians, according to Gaza’s Health Ministry, although a recent study by The Lancet estimated that the official death toll underreported the direct war deaths by at least 41 per cent and perhaps by as much as 107 per cent, adding that the true death toll possibly exceeded 1,86,000.
The United Nations Security Council (UNSC) announced an emergency meeting on Sunday (originally scheduled for Saturday) to discuss Israel’s plans to control Gaza. The announcement follows widespread condemnation of the Jewish nation’s plan.
The UN Secretary General’s chief spokesman described it as a “dangerous escalation”. “Saudi Arabia has strongly condemned the decision by the Israeli occupation authorities to occupy the Gaza Strip and categorically rejected their ongoing crimes of starvation, brutal practices, and ethnic cleansing against the brotherly Palestinian people,” the Saudi Press Agency reported.
Similarly, other countries such as Iran as well as Indonesia condemned Israel’s decision, while Turkey called for global pressure to prevent the plan from going ahead. EU Council President Antonio Costa said Israel’s decision to take over Gaza City “must have consequences for EU-Israel relations”, while European Commission president Ursula von der Leyen said Israel must reconsider its plan to take control of Gaza City.
Notably, Israeli allies, including France, Britain, Canada, Germany stepped up pressure on Israel as criticism mounted over shocking reports of starvation deaths that reached, according to Al Jazeera, 201 as of Saturday (August 9).
The UK, France and Canada announced their plans to recognise the Palestinian statehood, while Germany said on Friday (August 9) it would not authorise the export of military equipment that could be used in Gaza until further notice.
Germany is the second largest supplier of arms to Israel after the US, though it’s not clear if it would stop the sale of all arms to Israel. Germany also called on Israel not to take any steps to annex the West Bank.
However, what is more worrying is that it took nearly two years of genocide in Gaza for major powers to raise their voice against Israel. Yet, “the test is not what people say, but what people do”, argues Ilan Pappe, a leading Israeli historian, author and professor who has spent much of his life fighting for Palestinian rights, in an interview to a news portal called etos.media.
Although Pappe underlines that the situation indicates “how isolated Israel today is in the world”, he rues the fact that the real challenge for the European governments now is how to deal with it. “I think they’re becoming more and more alerted about the realisation that there’s not likely to be a change in Israeli policy in the future.”
In the meantime, mediators from Egypt and Qatar are preparing a new framework that will include the release of all Israeli hostages – dead and alive – in one go, in return for an end of the war in Gaza and the withdrawal of Israeli forces from the strip, The Associated Press reported, citing two Arab officials.
Elevating their relations to a strategic partnership, India and the Philippines have decided to enhance their defence and maritime cooperation, start negotiations on a new trade deal, and begin direct flights.
Following a meeting with visiting Filipino President Ferdinand Romualdez Marcos Jr., Prime Minister Modi said, “Strengthening defence relations is a symbol of deep mutual trust, and as maritime nations, maritime cooperation between the two countries is both natural and essential.”
The Filipino President’s visit comes as the two South Asian nations celebrate 75 years of establishment of diplomatic relations. To commemorate the occasion, the two leaders released a postage stamp as they signed 13 bilateral agreements, including a declaration on the new strategic partnership and an “action plan” for its implementation up to 2029.
Defence cooperation between the two nations, especially in the maritime domain, is seen as a crucial part of their strategic partnership against the backdrop of mounting pressure the Philippines faces from China. Strategic enhancement of relationships positions the Philippines, alongside Singapore, among India’s closest strategic partners within ASEAN.
This week, the Indian and the Philippines navies’ concluded their two-day joint naval exercise in the West Philippine Sea – waters that fall within the broader South China Sea and are claimed by China. The Filipino President said that the drill “sends a powerful signal of solidarity, strength in partnership and the energy of cooperation between two vibrant democracies in the Indo-Pacific.”
While the Philippines’ overtures to India are seen as part of its broader hedging strategy to deter growing Chinese assertiveness in the South China Sea, India has reiterated its advocacy for rules-based maritime order, freedom of navigation and peaceful resolution of disputes in the South China Sea.
Prime Minister Modi described the Philippines as an important partner in India’s Act East Policy and ‘MAHASAGAR’ vision, both of which seek to deepen ties with Southeast Asia, promote regional stability and counter an assertive China.
Moreover, India and the Philippines also agreed on the Terms of Reference for enhanced maritime cooperation between the Indian Coast Guard and the Philippine Coast Guard, while other defense-related mechanisms included the finalisation of the Terms of Reference between their armies, navies and air forces. Manila has decided to join the International Fusion Centre established by India for the Indian Ocean Region.
In April this year, India also delivered the second batch of Brahmos supersonic cruise missiles to the Philippines, which is also reported to be in talks to buy India’s short-range Akash missile.
In addition to defense and security cooperation, the two sides also discussed trade,connectivity, and people-to-people relations. Prime Minister Modi announced that direct flights between India and the Philippines will begin this year, while India will extend a free e-tourist visa facility to Filipino nationals for a period of one year, starting August 2025.
While India-Philippines trade relations have remained modest, negotiations on a Preferential Trade Agreement have also resumed, and discussions continue around the Terms of Reference (ToR) for a Trade Negotiations Committee.
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