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Coming soon, a new Trump version: A friend of Saudi Arabia

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Coming soon, a new Trump version: A friend of Saudi Arabia

[vc_row][vc_column][vc_column_text]Reports said the Kingdom of Saudi Arabia has allocated $ 68 million for preparations to host Trump.

Abu Turab

US President Donald Trump, who is known for his controversial statements on a plethora  of issues including Saudi Arabia’s role in spreading radical Islam, will be shortly seen in a new avatar when he visits Riyadh on May 20 and 21. It would the first stop of his maiden foreign trip where he will meet most Arab monarchs and other heads of Muslim states.

According to Washington Post, President Trump will visit Saudi Arabia, Israel and Vatican (Italy) and attend the NATO summit in Belgium.

A senior Trump administration official, while describing the visit, was quoted saying that the US President chose Saudi Arabia as his first stop to show his commitment to improving US relations with the Muslim world.  He will meet King Salman and other leaders where they are expected to discuss efforts to defeat terrorism and discredit radical ideologies.

At the White House Rose Garden on May 4, President Trump said his foreign trip would “begin with a truly historic gathering in Saudi Arabia with leaders all across the Muslim world”.  He was generous enough saying, “Saudi Arabia is the custodian of the two holiest sites in Islam and it is there that we will begin to construct a new foundation of cooperation and support with our Muslim allies to combat extremism, terrorism and violence and to embrace a more just and hopeful future for young Muslims in their countries.”

Saudi Arabian Foreign Minister Adel al Jubeir told reporters in Washington that Trump’s visit would send a clear message that the US harbours no ill-will towards Muslim countries, which he said was a “misconception” spread by Iran and extremists like the Islamic State (IS). He said, “This historic summit is going to change the narrative in the Islamic world and the world.’

Trump’s change of heart towards Saudi Arabia was revealed for the first time after becoming President, when he rolled out the red carpet for Deputy Crown Prince Mohammad bin Salman and his accompanying high-level delegation on March 14 this year.

The Saudi government had hailed it as a “historic turning point” in US-Saudi relations after eight contentious years with the Obama administration. The royal statement said that the prince considers Trump “a true friend of Muslims” and that the meeting marked a “significant shift in relations” across all fields.

Meanwhile, a White House statement said Trump and Salman had directed their teams to find ways “to further strengthen and elevate the United States-Saudi strategic relationship”.

During his campaign, Trump said, “They (Saudi Arabia) are loaded with money to the gills. The US protects them. We get practically nothing. Do you know why? Because our leaders don’t have business instinct!”

He further said, “Here’s what’s going to happen. We’ll say to Saudi Arabia, ‘Fellas, you’ve got to help us out.’ They’ll say, ‘No.’ We’ll say, ‘Bye, bye.’ About two days later, they’ll call and say ‘Get back here fast, somebody’s going to make a raid.’ We’ll go back. They’ll pay us so much money. And you know what? That’s fine.”

King Salman is said to have invited the heads of the Gulf Cooperation Council members:  Kuwait, Qatar, Bahrain, United Arab Emirates and Oman along with several other Muslim states.

The other invitees to the Arab-American Summit include King Abdullah II of Jordan, Iraqi President Fuad Masum, Algerian President Abdelaziz Bouteflika, Niger’s Mahamadou Issoufou, Morocco’s King Mohammed VI, Palestinian Authority President Mahmoud Abbas, Yemen’s virtually ousted President Abedrabbo Mansour Hadi, Tunisian President Beji Caid Essebsi and Prime Minister Nawaz Sharif from Pakistan.

The leaders of Egypt, Syria and Iran are missing from the list. In January, immediately after his inauguration, President Trump imposed ban on travellers from seven countries – Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen.

According to Saudi Foreign Minister Adel al Jubeir, separate meetings will also take place between monarchs of GCC countries and Trump, as well as bilateral talks between Saudi and US leaders.

Reports said the Kingdom of Saudi Arabia has allocated nearly $ 68 million to the preparations for hosting Trump.

During the US presidential campaign, New York Daily News had reported that Trump made millions of dollars from his deals with Saudi Arabia, which included leasing an apartment to former Al Qaeda leader Osama bin Laden’s half brother Shafiq. The Saudis paid $ 4.5 million in June 2001 and bought the 45th floor of the real estate mogul’s Trump World Tower in Manhattan. Shafiq met then US President George Bush on September 11, 2001, which was cut short due to the 9/11 attack.

Meanwhile, Gulf News, the largest circulated English daily in the GCC countries, observed that the Arab world has a historic opportunity to use the new American President Donald Trump’s first trip to make some cogent points on many important issues that challenge the region. It is an extraordinary compliment that Saudi Arabia will host Trump’s first state visit, wisely timed to the Gulf Cooperation Council Summit, the editorial, published on May 10, said.[/vc_column_text][/vc_column][/vc_row]

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India considers tax relief to attract foreign investors amid Iran war impact

India is evaluating tax incentives, including a possible capital gains tax exemption on government securities for foreign investors, to support capital inflows amid economic pressures linked to the Iran war.

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India is considering a set of measures aimed at attracting more foreign investment as the ongoing Iran war continues to create pressure on the country’s economy, according to reports citing government sources. One of the key proposals under discussion is the removal of capital gains tax on investments made by foreign portfolio investors (FPIs) in government securities.

The move comes at a time when geopolitical tensions in West Asia have pushed up global oil prices, weakened investor sentiment and increased pressure on the Indian rupee. India, which imports a significant share of its crude oil requirements, has been among the countries closely monitoring the economic fallout from the conflict.

Government exploring ways to boost capital inflows

Officials are reportedly evaluating tax-related incentives to make Indian debt markets more attractive to overseas investors. The proposed exemption on capital gains from government securities is aimed at encouraging foreign portfolio investment and supporting capital inflows during a period of heightened global uncertainty.

The government is seeking to counter the impact of foreign capital outflows that have intensified amid concerns over the Iran conflict and its implications for energy markets and global economic growth.

Rupee and markets under pressure

Recent weeks have seen increased volatility in financial markets, with foreign investors pulling money out of Indian equities. Analysts have linked part of the pressure on the rupee to rising oil prices and continued overseas investor withdrawals.

Market participants believe that measures aimed at attracting foreign investment into government securities could help improve investor confidence and provide support to the domestic currency.

Broader economic concerns

The Iran war has added to concerns about inflation, economic growth and India’s external sector. Higher energy prices can increase import costs and put pressure on inflation, while sustained foreign capital outflows may affect financial market stability.

While no final decision has been announced, discussions on easing tax rules for foreign investors reflect the government’s efforts to strengthen capital inflows and cushion the economy from external shocks.

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US proposes new tariffs on India over forced labour concerns amid trade negotiations

The United States has proposed additional tariffs on imports from India and 59 other economies following a Section 301 investigation into forced labour-related trade concerns.

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Donald Trump statement

The United States has proposed imposing additional tariffs on imports from India and 59 other economies after concluding that these countries have not taken sufficient steps to prevent the importation of goods allegedly linked to forced labour. The proposal was announced by the Office of the US Trade Representative (USTR) as part of an investigation conducted under Section 301 of the US Trade Act.

According to the USTR’s findings, India could face an additional tariff of 12.5% on goods exported to the United States. The proposed measure is part of a broader plan targeting 60 economies, with tariff rates ranging between 10% and 12.5% depending on the findings related to each country.

India among countries facing higher tariff proposal

The USTR said India had not effectively enforced restrictions on imports made using forced labour, describing the issue as a burden on US commerce. The agency argued that inadequate enforcement by major trading partners creates unfair competition for American workers and businesses.

While countries including Canada, Mexico, the European Union and the United Kingdom are proposed to face a 10% tariff, India is among a larger group of economies that could be subjected to a 12.5% duty under the recommendation.

Proposal comes during India-US trade discussions

The tariff proposal has emerged while Indian and US officials are engaged in trade negotiations aimed at strengthening economic ties between the two countries. A US delegation led by Assistant USTR Brendan Lynch is currently holding discussions with Indian officials in New Delhi.

India’s Commerce Ministry has indicated that discussions with the United States on the matter are continuing and noted that the proposed tariffs have not yet been finalised. The USTR has invited public comments on the proposal until July 6, with a public hearing scheduled for July 7 before any final decision is taken.

Certain products may remain exempt

The proposed tariffs include exemptions for several categories of goods, including some energy products, pharmaceuticals, rare earth materials and selected agricultural commodities. Additional details regarding sector-specific measures, including proposed textile-related actions, are expected to be released separately.

The latest move follows a Section 301 investigation launched earlier this year into forced labour concerns across global supply chains. Any final decision on imposing the tariffs will be made after the consultation process is completed.

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Trump reportedly rebukes Netanyahu over Lebanon strikes amid ceasefire concerns

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US President Donald Trump reportedly delivered a sharp rebuke to Israeli Prime Minister Benjamin Netanyahu during a phone call over Israel’s military actions in Lebanon, as concerns grow that renewed hostilities could jeopardise fragile diplomatic efforts in the region.

According to multiple reports, Trump expressed frustration over Israeli strikes linked to ongoing tensions with Hezbollah in Lebanon. The reported exchange came at a sensitive time, with Washington attempting to prevent further escalation while also pursuing broader diplomatic discussions involving Iran.

Reports point to unusually tense exchange

Sources cited in international reports said Trump used unusually strong language during the conversation, warning that continued military actions risked damaging efforts to stabilise the situation. One report claimed Trump told Netanyahu that his actions were hurting Israel’s international standing and complicating diplomatic initiatives.

The reported disagreement followed Israeli operations against Hezbollah-linked targets in Lebanon. While Israeli officials argued that the actions were a response to security threats and ceasefire violations, the US administration has been pushing for restraint to avoid a wider regional conflict.

Lebanon fighting threatens broader diplomatic efforts

The latest tensions come amid efforts to maintain a ceasefire framework between Israel and Hezbollah. US officials have been involved in discussions aimed at reducing hostilities and preventing attacks on major Lebanese population centres, including Beirut.

Reports indicate that Trump personally intervened to discourage further escalation and support negotiations intended to preserve regional stability. Hezbollah has reportedly signalled a willingness to consider a broader ceasefire arrangement if reciprocal commitments are made.

Differing public messages after the call

Despite reports of a heated conversation, Trump later suggested publicly that discussions had been constructive and that progress had been made toward reducing tensions. Netanyahu, however, maintained that Israel would continue to respond to security threats and would not alter its overall approach toward Hezbollah if attacks persisted.

The developments highlight growing challenges facing diplomatic efforts in the Middle East, where the conflicts involving Israel, Lebanon and Iran remain closely interconnected. Analysts say any major escalation in Lebanon could further complicate ongoing negotiations and increase instability across the region.

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