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Mexico imposes 50% tariff on Indian imports, auto exports maybe hit

Mexico’s approval of 50% import duties on select goods from India and other Asian countries threatens nearly $1 billion worth of Indian exports, especially in the automobile sector.

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Mexico has cleared steep import duties of up to 50% on several goods from Asian nations, a move that places nearly $1 billion worth of Indian exports at risk from January 1, 2026. The decision targets countries that do not have a trade agreement with Mexico, including India, South Korea, China, Thailand and Indonesia.

Mexico moves to shield domestic industry

The new duties—covering items such as automobiles, auto parts, textiles, plastics, steel, footwear, furniture, toys, appliances, leather goods, and cosmetics—are aimed at strengthening local manufacturing. Mexico says the tariff push is designed to reduce dependence on Asian imports and support domestic producers.

China stands to face the highest impact, with Mexican imports from the country touching $130 billion in 2024. According to Mexico, the revised tax structure is also expected to generate $3.8 billion in additional revenue.

Mexican President Claudia Sheinbaum has backed the decision, framing it as an investment in domestic employment creation. Analysts, however, believe the move may also align with the United States’ expectations ahead of the upcoming United States–Mexico–Canada (USMCA) review.

Impact on India’s automobile exports

The sharpest blow for India will fall on its automobile sector. Imports of passenger cars into Mexico will now face 50% duty instead of the earlier 20%, threatening the competitiveness of major exporters including Volkswagen, Hyundai, Nissan and Maruti Suzuki.

Industry estimates cited in a report say around $1 billion worth of Indian automobile shipments could be affected. Ahead of the tariff announcement, an industry body had urged the Indian government to engage with Mexican authorities to safeguard market access.

Mexico is currently India’s third-largest car export destination, trailing only South Africa and Saudi Arabia.

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Military conflict alone cannot resolve global crises says PM Modi

PM Narendra Modi says dialogue, diplomacy and rule of law are essential to end global conflicts, referring to wars in Ukraine and West Asia during a joint briefing with Finland’s president.

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PM Narendra Modi

Prime Minister Narendra Modi on Thursday said that military confrontation alone cannot resolve global disputes, stressing that dialogue, diplomacy and respect for the rule of law remain essential to end ongoing conflicts such as the Russia-Ukraine war and the escalating tensions in West Asia.

Speaking at a joint press briefing in New Delhi with Finnish President Alexander Stubb, the Prime Minister said India and Finland share a common view that peaceful engagement is the only sustainable path to resolve international crises.

“India and Finland both believe in the rule of law, dialogue and diplomacy. We agree that no issue can be resolved through military conflict alone. Whether it is Ukraine or West Asia, we will continue to support the swift end of conflicts and every effort towards peace,” PM Modi said.

Call for reform in global institutions

Highlighting the changing global landscape, the Prime Minister also stressed the need to reform international institutions so that they can effectively address emerging global challenges.

“We also agree that reforming global institutions to address growing global challenges is not only necessary but urgent. Eliminating terrorism in all its forms is our shared commitment,” he said.

Middle East tensions intensify

The Prime Minister’s remarks came at a time when tensions in the Middle East have sharply escalated. The conflict began after a joint US-Israel strike reportedly killed Iran’s supreme leader Ayatollah Ali Khamenei earlier this week.

In response, Iran launched retaliatory strikes targeting Israel and locations across the Gulf region. The situation has also drawn in Hezbollah, the Iran-backed group based in Lebanon, widening concerns about a broader regional conflict.

Impact on the wider global situation

The ripple effects of the escalating Middle East tensions are being felt globally, including in Ukraine, where Russia’s invasion has continued for four years.

Referring to the broader geopolitical climate, PM Modi said the world is currently facing instability and uncertainty, with conflicts affecting several regions.

“Today the world is going through a period of instability and uncertainty. Conflict persists in many parts of the world, from Ukraine to West Asia,” he said.

India and Europe entering stronger partnership phase

The Prime Minister also highlighted the strengthening relationship between India and Europe, pointing to the historic trade agreement signed with the European Union earlier this year.

According to him, growing cooperation between India and Europe is helping reinforce global stability, development and shared prosperity.

“In such a global environment, India and Europe, two of the world’s major diplomatic powers, are entering a golden era of their relationship. Our growing cooperation is giving new strength to global stability, development and shared prosperity,” PM Modi said.

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US urges India to look beyond Russian oil, says American supply is best alternative

US Deputy Secretary of State Christopher Landau says there is no better alternative than American energy supplies as India continues large purchases of Russian oil.

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The United States has urged India to consider American energy supplies as an alternative to Russian oil, with US Deputy Secretary of State Christopher Landau saying there is no “better alternative” than the US.

Speaking during the Raisina Dialogue in New Delhi on Thursday, Landau suggested that India should explore other sources of energy while responding to a question about the country’s continued purchases of Russian crude.

“I hope you are looking for alternate sources… You can’t have a better alternative than the USA,” he said during a session titled Power, Purpose, and Partnerships: American Foreign Policy in a New Era.

Energy concerns amid regional tensions

Landau’s remarks come as global energy markets face uncertainty due to the ongoing Iran conflict, which has raised concerns about possible supply disruptions in the Middle East.

Industry sources indicate that Russia is prepared to redirect crude shipments to India to compensate for potential supply interruptions. Nearly 9.5 million barrels of Russian crude are currently on vessels near Indian waters and could reach domestic refineries in the coming weeks.

India significantly increased its purchases of Russian oil after the Russia-Ukraine war began in 2022, taking advantage of discounted crude and becoming one of Moscow’s major buyers. Western governments have frequently criticised the trade, arguing that it helps finance Russia’s military campaign.

India’s energy security also faces logistical challenges. Around 40 percent of the country’s crude imports move through the Strait of Hormuz, a vital maritime route for global oil shipments. Any disruption in the region could affect supplies to Indian refineries.

Because of this risk, refiners in India are reportedly exploring alternative sources if disruptions in the region continue for more than 10 to 15 days.

Trade ties and strategic relations

The comments come shortly after India and the United States announced a trade agreement aimed at expanding economic cooperation.

Following the announcement, the White House indicated that tariffs on Indian goods could be increased if New Delhi resumed large-scale purchases of Russian oil. India, however, has not officially confirmed any decision to halt Russian crude imports.

Russia has also hinted at potential moves in global energy markets. President Vladimir Putin recently said Moscow could consider halting gas supplies to Europe amid rising energy prices linked to the crisis.

‘America First doesn’t mean America alone’

During his address, Landau defended the “America First” foreign policy approach under US President Donald Trump, stating that it should not be interpreted as isolationist.

“America First doesn’t mean America alone,” he said, adding that Washington expects other countries to pursue their own interests as well.

“Our foreign policy is focused on advancing US interests. We are not a charity,” he added.

Referring to the leadership in both countries, Landau said Trump would aim to “make America great again” while expecting Prime Minister Narendra Modi to focus on strengthening India.

He also described the current period as an important phase in the relationship between the two countries.

“This century is going to see the rise of India. It is in our interest to be partners,” he said, noting that Washington closely follows India’s economic growth and views the relationship as strategically important.

Landau also expressed optimism about ongoing trade negotiations between the two countries, saying the agreement is “almost at the finishing line” and that the US is eager to expand economic engagement with India.

At the same time, he cautioned that Washington does not want to repeat past strategic miscalculations.

“We are not going to make the same mistake with India which we made with China 20 years ago,” he said.

US stance on Middle East tensions

Addressing the broader conflict in the Middle East, Landau said Washington’s priority is to ensure that instability in the region does not threaten global security.

He reiterated the US position on Iran’s nuclear ambitions, stating that Washington had repeatedly warned Tehran against developing nuclear weapons.

“We tried hard to explain our red line to Iran, which is no development of a nuclear weapon,” he said, adding that the US believed diplomacy had not been successful.

Landau also said the future of Iran’s leadership ultimately lies with its citizens.

“Ultimately, the Iranian people will have to decide who their leadership is going to be,” he said.

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US submarine sinks Iranian warship IRIS Dena in Indian Ocean, at least 87 feared dead

An Iranian warship that had participated in the MILAN naval exercise in India was sunk by a US submarine in the Indian Ocean, leaving at least 87 people dead and dozens missing.

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At least 87 people have been killed after a United States submarine torpedoed an Iranian warship in the Indian Ocean, according to reports by media. The vessel, identified as IRIS Dena, had recently participated in a multinational naval exercise in India before the incident occurred.

The Iranian frigate, a Moudge-class warship, had taken part in the MILAN naval exercise earlier this year. After completing the exercise and beginning its return journey, the vessel was reportedly attacked by a US submarine while sailing in international waters.

US Defence Secretary Pete Hegseth confirmed that an American submarine carried out the strike. Speaking to reporters, he described the attack as proof of the United States’ ability to project military power across the globe amid its ongoing conflict with Iran.

“An American submarine sunk an Iranian warship that thought it was safe in international waters. Instead, it was sunk by a torpedo,” Hegseth said.

Video of strike released by US

Following the attack, the US Department of War released a black-and-white video showing what appeared to be footage from a submarine periscope followed by a distant explosion. The release of near real-time visuals from a submarine attack is considered unusual and highlights changing practices in wartime information sharing.

Military observers noted that the Iranian vessel likely did not detect the US submarine, even though it was operating at periscope depth. Analysts say this suggests a high level of stealth and tactical capability on the part of the American submarine.

Warship had recently visited India

IRIS Dena had earlier travelled to India to participate in the MILAN 2026 naval exercise, one of the largest multilateral maritime drills in the Indo-Pacific region. The exercise brings together navies from several countries to improve cooperation, maritime awareness and coordinated response to security challenges.

According to a statement issued by the Indian Navy on February 16, the harbour and sea phases of MILAN included complex maritime operations such as anti-submarine warfare, air defence exercises and search-and-rescue missions.

It remains unclear whether the US submarine had been monitoring the Iranian ship during its journey to and from the exercise. Defence experts believe it is possible that the submarine tracked the vessel throughout its voyage for intelligence purposes, a practice that is common among naval forces.

Bodies recovered near Sri Lanka

Officials from the Sri Lankan Navy said that 87 bodies have been recovered so far following the sinking of the frigate near Sri Lanka’s coast. Rescue operations are continuing as search teams attempt to locate missing sailors.

Authorities said 32 survivors have been rescued, while 61 crew members are still reported missing.

First torpedo sinking since World War II

Hegseth described the operation as a “quiet death” and said it marked the first time since World War II that the United States has sunk an enemy vessel using a torpedo.

“Like in that war, we are fighting to win,” he said.

According to the Pentagon, a key objective of the ongoing US-Israeli war against Iran is to neutralise Iran’s naval capabilities.

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