News Brief
Swarajya Staff
Apr 03, 2025, 07:29 AM | Updated 07:34 AM IST
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Trump Imposes 26 Per Cent Reciprocal Tariff On India
US President Donald Trump has announced long-anticipated reciprocal tariffs, dubbing 2 April "Liberation Day" for the United States.
Tariffs have been imposed on allies and foes alike, with India facing a steep 26 per cent import duty and China 34 per cent—half of what Trump claims they charge the US.
"PM Modi he just left, he's a great friend of mine, but I said you're a friend of mine, but you're not treating us right. They charge us 52 per cent," Trump said.
The EU, UK, and Japan have also been hit with tariffs ranging from 10 to 24 per cent, in addition to a baseline 10 per cent duty on all imports starting 5 April.
Trump declared that America was reclaiming its industries and jobs, promising that the move would boost small businesses and manufacturing. The White House cited national security concerns and persistent trade deficits as reasons for the decision, with higher country-specific tariffs set to take effect on 9 April.
Manufacturing Activity Hits 8-Month High
India’s manufacturing activity rebounded in March, with the PMI rising to 58.1 from 56.3 the previous month, driven by strong domestic demand. Auto sales surged, with Mahindra & Mahindra reporting an 18 per cent increase and Escorts Kubota seeing a 15 per cent rise, while two-wheeler sales also grew in double digits.
GST collections hit an 11-month high of Rs 1.96 lakh crore, and UPI transactions neared Rs 25 lakh crore, signalling robust economic activity. Coal production, however, fell 3.1 per cent for the year, and manufacturing growth is expected to slow to 4.3 per cent in FY25 from 12.3 per cent previously. Inflation pressures rose slightly but remained manageable, with core inflation expected to stay under control.
India's Sea Borders To Expand With New Mapping System
India plans to update how it measures its coastline by adopting a modern global system—WGS84—replacing the outdated Everest Ellipsoid system, which is not widely recognised. This change could slightly expand India’s sea territory, including its Exclusive Economic Zone (EEZ), by a few meters to a few hundred meters. In some areas, like Sir Creek, the shift could move the baseline by about 57 meters.
The government is reviewing 133 coastal points for an official update. A similar mapping system was used in the 2014 ruling that settled the India-Bangladesh sea border dispute.
Other Developments
Spending Set To Pick Up In FY26 Despite Global Risks
India's consumption demand is expected to rise in FY26, driven by income tax relief, moderating inflation, and better job opportunities, despite global economic challenges. Economists anticipate Private Final Consumption Expenditure (PFCE) growth at 7.6 per cent in FY25, with per capita PFCE reaching Rs 75,723.
However, sluggish wage growth and a potential global slowdown could impact MSMEs and urban spending. A normal monsoon remains crucial for sustaining demand recovery, while a possible GST rate cut could further boost consumption. Retail inflation has eased to 4.8 per cent in FY25, though food inflation remains a concern.
PMs’ Museum Seeks Access To Nehru Papers Taken by Sonia
The Prime Ministers’ Museum & Library (PMML) has written to Sonia Gandhi requesting access to Jawaharlal Nehru’s private papers, which she reclaimed in 2008. The letter seeks permission for researchers to study the documents and asks Sonia to donate any additional correspondence relevant to modern Indian history.
The issue was discussed in PMML’s last meeting, where members considered seeking legal opinion on the ownership and use of these papers. The documents, originally donated by Indira Gandhi in 1971 and later by Sonia, include Nehru’s letters to figures like Jayaprakash Narayan, Edwina Mountbatten, and Albert Einstein.
Centre Tweaked Waqf Bill On Eve Of Debate
On the eve of parliamentary discussions on the Waqf (Amendment) Bill, the government proposed three significant amendments.
The first amendment declares that any protected monuments or areas previously designated as waqf will be nullified, preventing such declarations in the future. The second amendment prohibits the designation of lands in Scheduled or tribal areas as waqf, safeguarding the rights of tribal communities.
The third amendment mandates district magistrates to implement waqf board decisions within a 45-day timeframe, ensuring timely enforcement.
Trump’s Tariffs On China To Hit 54 Per Cent After New Hikes
Trump’s tariffs on China are set to reach an unprecedented 54 per cent as his latest 34 per cent levy, announced in the Liberation Day address, adds to the existing 20 per cent. The new tariffs aim to curb trade imbalances and stop fentanyl inflows, according to the White House. To prevent Chinese firms from bypassing tariffs, steep duties were also imposed on Vietnam (46 per cent) and Cambodia (49 per cent).
Beijing has vowed retaliation, with Foreign Minister Wang Yi calling the move “blackmail” and threatening countermeasures. China has already hit US agricultural and fuel exports in response to previous tariff hikes.
Trump’s Tariffs On India Lower Than Those On China, Southeast Asia
India will face a relatively lower tariff burden in Donald Trump's "Liberation Day" trade escalation compared to China and Southeast Asian competitors. China’s reciprocal tariff has been set at 34 per cent (on top of the existing 20 per cent), while Vietnam faces 46 per cent, Thailand 36 per cent, and Indonesia 32 per cent.
Among major Southeast Asian economies, only Malaysia has a lower tariff than India, at 24 per cent, while India faces 26 per cent. This move will hurt China, as it has relied on these countries to circumvent tariffs. The lower tariff could give Indian exporters an edge over their Southeast Asian rivals, who had benefited in recent years from companies shifting production away from China. Additionally, an early trade deal—currently under negotiation—could further strengthen India’s position.
From The States
SC Rebukes Telangana CM Over Defection Remark
The Supreme Court strongly criticised Telangana CM Revanth Reddy for allegedly stating in the assembly that no by-elections would take place even if Opposition MLAs switched to the ruling Congress. Justices BR Gavai and Augustine George Masih said such remarks mock the anti-defection law under the Tenth Schedule.
The court was hearing pleas challenging the Speaker’s delay in deciding on disqualification petitions against defected MLAs. Petitioners argued that the Speaker ignored a Telangana HC directive to act within a reasonable time. Justice Gavai stressed that statements made in the assembly carry legal weight and should not be taken lightly.
Mamata Cancels Police Leaves Ahead Of Ram Navami
The West Bengal Police has cancelled all leaves for its personnel until April 9, citing past incidents of communal clashes during Ram Navami celebrations. The state sees attacks on Ram Navami processions every year, leading to violence, stone-pelting, and property damage, prompting heightened security measures.
The order came into effect immediately, with intelligence inputs also influencing the decision. The move comes as Mamata Banerjee faces criticism over her recent Eid event remarks, which were perceived as 'anti-Hindu'.
You’re all caught up—until next time.