Morning Brief: Trump Halts Tariff Hikes But Ups The Ante On China; Rahul Gandhi Vows To Scrap 50 Per Cent Quota Cap; CJI-Led Bench To Hear Petitions Challenging Waqf Law; And More

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Trump Halts Tariff Hikes But Ups The Ante On China

US President Donald Trump has announced a 90-day pause on higher US tariffs for most countries, even as tensions with China intensified. Shortly after new levies on around 60 trading partners took effect, Trump suspended the plan but said his 10 per cent baseline tariff on virtually all imports would remain in place while negotiations continued. He simultaneously raised tariffs on Chinese goods to 125 per cent, accusing Beijing of showing a "lack of respect" after it retaliated with 84 per cent tariffs on US imports.

This policy shift follows last week's announcement of import taxes on all goods entering the US, marking the most significant trade upheaval in decades. The plan includes a 10 per cent baseline tariff and much higher rates for countries labeled "worst offenders," such as the EU, Vietnam, India South Africa, and others. Markets reacted with heavy sell-offs, wiping out trillions globally, and pushing US government debt interest rates to 4.5 per cent — the highest since February.

Rahul Gandhi Vows To Scrap 50 Per Cent Quota Cap

Congress leader Rahul Gandhi on Wednesday (9 April) vowed to lift the 50 per cent cap on reservations for Scheduled Castes, Scheduled Tribes, and Other Backward Classes in education and government jobs. Speaking at a party session in Ahmedabad, he demanded a nationwide caste census and praised Telangana’s move to raise Backward Class reservations to 42 per cent, pushing total quotas beyond the Supreme Court’s ceiling. He called the Telangana model “revolutionary” and promised to implement it at the national level if Congress comes to power.

Gandhi noted that in Telangana, 90 per cent of the population comprises OBCs, Dalits, minorities, and Adivasis—a pattern he said reflects the national demographic. Referring to the Supreme Court’s 1992 ruling in the Mandal case that capped reservations at 50 per cent, he argued the limit restricts social justice and must be removed to ensure fairer access to education and jobs.

CJI-Led Bench To Hear Petitions Challenging Waqf Law

The Supreme Court will hear a batch of petitions challenging the Waqf Act amendments on April 16, with a three-judge bench led by Chief Justice Sanjiv Khanna taking up the matter. The lead petition, filed by AIMIM MP Asaduddin Owaisi, argues that the law is arbitrary, discriminatory on religious grounds, violates the Shariat Act, and undermines the Muslim community’s right to manage its religious institutions.

Other petitioners include AAP MLA Amanatullah Khan, RJD MP Manoj Jha, and various civil rights and religious organisations. On Tuesday, the Centre filed a caveat urging the court to hear its views before issuing any orders. The case comes amid rising tensions, with recent protests over the Waqf Act turning violent in parts of West Bengal.

Other Developments

India To Buy 26 Rafale-M Fighters For INS Vikrant

India will buy 26 Rafale M fighter jets from France through a government-to-government deal worth Rs 64,000 crore, aimed at strengthening operations on the aircraft carrier INS Vikrant. The government cleared the proposal just ahead of French Defence Minister Sébastien Lecornu’s visit, with deliveries expected to start five years after the contract is signed. With the commissioning of INS Vikrant, India has two operational aircraft carriers, but not enough MiG-29Ks to equip both — a gap made worse by the Russian jets’ ageing design and recurring maintenance issues.

The MiG-29Ks will continue to serve on INS Vikramaditya while the Rafales join Vikrant’s fleet. Meanwhile, India is developing its own carrier-based fighter, the Twin Engine Deck Based Fighter (TEDBF), with the first flight planned in 2028 and induction likely by 2035.

US Tariffs On China Raise Dumping Fears In India

The government has already initiated several investigations, including suo motu probes into Chinese imports like roller chains and glass mirrors, especially to protect MSMEs. Commerce Minister Piyush Goyal, in a meeting with exporters, warned against rerouting Chinese goods through India, which could provoke a backlash from the US and disrupt ongoing trade negotiations.

India's Electronics Exports On Track To Cross $50 Billion By 2030

India’s electronics exports could exceed $50 billion annually by 2030, driven by a government push to boost local manufacturing of smartphone, laptop, and semiconductor components. India’s electronics exports crossed $23 billion in FY25, marking a 54 per cent growth over FY24, with production growing fivefold and exports increasing sixfold since 2015.

To sustain this momentum, the Centre has launched a new incentive scheme offering up to 10 per cent of annual turnover and 25 per cent of capital expenditure for companies producing key electronic components and equipment domestically. The $2.7 billion scheme, spread over six years, also allows foreign firms to access incentives, with detailed guidelines to be announced later.

India Shuts Bangladesh Cargo Route To Third Countries Amid Tensions

India has halted the transshipment of Bangladeshi cargo to third countries via its territory, affecting global brands like Zara that relied on Delhi for air freight. The government cited congestion at Indian ports and airports, saying the move, effective from 8 April, is aimed at clearing backlogs and supporting Indian exporters.

The MEA clarified that the restriction does not apply to Bangladeshi goods heading to Nepal and Bhutan. The decision follows controversial comments by Bangladeshi Nobel laureate Muhammad Yunus in China and concerns over Dhaka’s deepening ties with Beijing near India’s sensitive Siliguri Corridor. Indian industry welcomed the move, saying it will lower freight costs and improve export logistics.

From The States

Odisha: Tensions Rise In BJD Over Waqf Bill Flip-Flop

Despite Naveen Patnaik’s call for restraint, a rift within the Biju Janata Dal (BJD) has deepened, with over a dozen senior leaders meeting to oppose "outside interference" in party affairs. The leaders, including Shashi Bhusan Behera, reiterated their loyalty to Patnaik and warned against any attempts to weaken his leadership.

Though no names were mentioned, the criticism was seen as directed at V K Pandian, Patnaik’s former aide, who played a key role in the BJD’s recent election campaign but had announced his exit from politics after the party’s defeat.In response, Patnaik disapproved of the meeting's venue and defended Pandian, stating he was no longer involved with the party and had contributed significantly to both the state and the BJD.

83,000 Non-Locals Given Domicile Papers In J&K Since 2022

Over 83,000 individuals who were earlier not classified as state subjects have been granted domicile certificates in Jammu and Kashmir over the past two years.. The J&K Revenue Department has said that 83,742 of the 35.12 lakh domicile certificates issued since 2022 went to non-permanent residents.

The department clarified that the term “state subject,” which referred to permanent residents under the now-defunct J&K Constitution, is no longer in use following the abrogation of Article 370. The old criteria defined permanent residents based on historical settlement before 1954 or ancestral links to those residing in J&K under Dogra rule. In May 2020, new rules for granting domicile certificates were introduced.

You’re all caught up—until next time.