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Saudi Arabia extends ultimatum, Qatar remains reluctant

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Saudi Arabia extends ultimatum, Qatar remains reluctant

[vc_row][vc_column][vc_column_text]Internal Crisis forces Saudis to punish Doha

By Abu Turab

The US supported Kuwait’s mediation for resolving crisis between Saudi Arabia plus three allies and Qatar seems to be working. On Kuwait’s Emir Sheikh Sabah al-Sabah’s request, Saudi Arabia, UAE, Bahrain and Egypt, on Sunday morning, agreed to extend their 10 day ultimatum by another 48 hours. The ultimatum expired Sunday midnight.

The joint statement was released through SPA the official news agency of Saudi Arabia while KUNA the Kuwait’s official news agency claimed that Emir received a response from Qatar regarding 13 point demands presented by Saudi led block of Arab countries.

The foreign ministers of Saudi Arabia-led group of four countries will review Qatar’s response in a meeting scheduled to be held in Cairo on Wednesday. Egypt’s Foreign Ministry spokesman Ahmed Abu Zeid, was quoted as saying, “At the invitation of  foreign Minister Sameh Shoukry, there will be a quartet meeting of the foreign ministers of Egypt, Saudi Arabia, the UAE and Bahrain in Cairo on Wednesday July 5 to follow up on the developing situation regarding relations with Qatar.”

Saudi Arabia and its allies severed diplomatic ties with Qatar on June 5, sparking worst diplomatic crisis in decades. Qatari citizens were ordered to leave these countries and various steps were taken against Qatari companies and financial institutions. All land and air links were also severed.

On June 22, Saudi Arabia led block of Arab countries presented a list of 13 demands and gave Qatar ten days to comply.

Meanwhile Qatar’s Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani, while speaking to journalist on Saturday in Rome said, “The list of demands is made to be rejected. The state of Qatar …is rejecting it as a principle. We are willing to engage in providing the proper conditions for further dialogue.”

Meanwhile QNA, the official Qatari News Agency, has reported that Foreign Minister will inform the ruler of Kuwait of Qatar’s response on Monday.

However, the US administration headed by Donald Trump, who initially justified Saudi led bloc action against Qatar, has been giving varying responses. A Department of State official said on Sunday that US encourages “all parties to exercise restraint to allow for productive diplomatic discussions. We are not going to get ahead of those discussions. We fully support Kuwait mediation”.

Earlier this week, Secretary of State Rex Tillerson insisted that Qatar’s neighbors provide a list of demands that was “reasonable and actionable”. He had also called for compromise and hosted senior Gulf officials, but efforts were undermined by President Trump who apparently supported Riyadh’s position.

Saudi Arabia had demanded Qatar to shut down Al Jazeera network, close Turkish military base and scale down ties with Iran. Qatar was also asked to cut ties with Muslim Brotherhood and other groups including Hezbollah, al-Qaeda and IS.

The Saudi Arabia led block also asked Qatar to stop all means of funding for individuals, groups or organizations that have been designated as terrorists by Saudi Arabia, UAE, Egypt, Bahrain, US and other countries.

Qatar must also refuse to naturalize citizens from the four countries and “revoke Qatari citizenship for existing nationals where such citizenship violates those countries’ laws”. Qatar should also hand over “terrorist figures”, fugitives and wanted individuals from Saudi Arabia led bloc to their countries of origin, freeze their assets and provide any desired information about their residency, movements and finances. They also asked Qatar to cease contact with the political opposition in these countries.

Demand of severing ties with Iran was explained in detail. Doha was asked to shut down  its diplomatic posts in Iran, expel any members of Iran’s Revolutionary Guards and conduct trade and commerce in accordance with the US and international sanctions in manner that does not “jeopardize the security” of the GCC member countries.

The desired media clampdown was not targeted at Al-Jazeera only. Al Jazeera’s affiliates and other news outlets including Arabi21, Rassd, Al-Araby Al-Jadeed and Middle East Eye were also asked to be close down.

Doha was also asked to “align Qatar’s military, political, social and economic policies with other Gulf and Arab countries, as well as on economic matters, as per 2014 agreement reached with Saudi Arabia”.

Another demand, which could have been quite costly for Qatar, says to “pay reparations and compensation for loss of lives and other financial losses caused by Qatar’s policies in the recent years. The sum will be determined in coordination with Qatar”.

They asked Qatar to agree to all demands within ten days of list being submitted, or the list will become invalid. Qatar must consent to monthly compliance audits in the first year after agreeing, followed by quarterly audits in the second year and annual audits in the following ten years.

The situation may deteriorate in case of Qatar’s non-compliance. UAE Ambassador to Russia Omar Ghobash, during an interview last week said that Qatar could face fresh sanctions by Gulf States asking their trading partners to choose between them or with Doha. Commercial bankers in the region believe that Saudi, Emirati and Bahraini banks might receive official guidance to pull deposits and interbank loans from Qatar.

However UAE’s Minister of State for Foreign Affairs Anwar Gargash has played down the chances of escalation saying “the alternative is not escalation but parting ways” from the six-member GCC.

On the other hand Qatar’s Foreign Minister Sheikh Mohammad bin Abdulrahman Al-Thani , while speaking in Washington last week, said the GCC was set up to guard against external threats. “When the threat is coming from inside the GCC, there is a suspicion about the sustainability of the organization.”

Following the severing of diplomatic ties by Saudi led bloc and delinking ground and air routes with Qatar, Iran and Turkey have started supplying food items, water and other necessities and welcomed Qatar Airways to use their skies.

In one of his tweets, Saudi Arabia’s representative in UN Abdullah bin-Yahya al-Moallemi said: “Qatar had insisted on shaking the security of the kingdom of Saudi Arabia and interfering in the affairs of countries in the region.”

Saudi Arabian forces have been assisting Bahrain in controlling opposition protests demanding their basic rights. Riyadh is also heading a coalition with started war against Yemen, currently under Houthis control. Qatar was also alleged by Riyadh to have ties with Yemen’s Ansarullah, the militia force of the Houthis fighting against Saudi hegemonic war. The ousted President Mansour al-Hadi led government in exile is based in Riyadh for more than a year.

Kuwait, working for mediating in the crisis and Oman have not followed Saudi Arabia’s diktat for severing relations with Qatar. Among the GCC countries, Oman and Kuwait have better ties with Tehran than other GCC member countries. Diplomatic ties between Saudi Arabia and Iran were severed after violent protest at Saudi embassy in Tehran in the aftermath of stampede tragedy in Mina, during Haj 2015. Some 465 Iranians were among those killed out of more than 1400 casualties. However Saudi Arabia admitted the death of 769 only. Others remain missing till date. More than 100 Indians were killed while 280 remained missing.[/vc_column_text][/vc_column][/vc_row]

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India studying implications after US Supreme Court strikes down Trump’s global tariffs

India said it is studying the implications of a US Supreme Court ruling that struck down Donald Trump’s sweeping tariffs, even as a new 10% global duty has been announced under an alternate law.

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Donald Trump

India on Saturday said it is closely examining the implications of a recent ruling by the US Supreme Court that struck down former US President Donald Trump’s sweeping global tariffs.

In its initial response, the Commerce Ministry said it has taken note of both the court’s judgement and subsequent announcements made by the US administration.

“We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard,” the ministry said.

“Some steps have been announced by the US administration. We are studying all these developments for their implications,” it added.

What did the US Supreme Court rule?

On Friday, the conservative-majority court ruled 6–3 that a 1977 law relied upon by Trump to impose sudden tariffs on individual countries does not authorise the President to impose such sweeping duties.

The judgement marked a significant setback to Trump’s tariff policy, which had reshaped trade relations with several countries.

Responding to the ruling, Trump criticised members of the court, saying he was “ashamed” of certain justices and describing the verdict as disappointing.

Fresh tariffs under Section 122

Following the court’s decision, Trump announced new tariffs using Section 122 of the Trade Act of 1974. The provision allows the US President to impose temporary tariffs of up to 15 per cent for a maximum period of 150 days to address large and serious balance-of-payments deficits.

Under this route, a new 10 per cent global tariff has been imposed on imports into the United States. Trump said the revised order would be effective almost immediately.

US Treasury Secretary Scott Bessent, speaking at the Economic Club of Dallas, said the alternative mechanism would result in virtually unchanged tariff revenue in 2026.

Impact on India

Under the revised order, India faces a tariff rate of 10 per cent, reduced from the earlier 18 per cent under Trump’s broader tariff framework.

The new duty is scheduled to take effect from February 24 for a period of 150 days. Exemptions will continue for sectors subject to separate investigations, including pharmaceuticals, as well as goods entering the US under the US-Mexico-Canada Agreement framework.

India has not announced any retaliatory measures and has indicated that it is currently assessing the trade and economic implications of the US decisions.

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PM Modi meets Sri Lankan President Dissanayake at AI summit, reviews connectivity agenda

PM Modi and Sri Lankan President Anura Kumara Dissanayake reviewed connectivity, AI cooperation and regional stability during talks at the AI Impact Summit in New Delhi.

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PM Modi meet sri lanka president

Prime Minister Narendra Modi on Friday held talks with Sri Lankan President Anura Kumara Dissanayake on the sidelines of the AI Impact Summit in New Delhi, reviewing the progress of bilateral initiatives and reaffirming their commitment to deepening connectivity and development cooperation.

President Dissanayake was in India to attend the India-hosted AI Impact Summit. The visit marked his second trip to India since assuming office, following his State Visit in December 2024.

Focus on connectivity and development

According to the Ministry of External Affairs, the two leaders assessed developments stemming from recent high-level engagements, including Prime Minister Modi’s State Visit to Sri Lanka in April 2025. They emphasised fast-tracking cooperation across three key pillars — physical, digital and energy connectivity — which remain central to India-Sri Lanka relations.

Both sides reiterated that improved connectivity would not only enhance economic integration but also contribute to long-term stability and prosperity in the region.

AI collaboration and inclusive growth

Technology-driven development also featured prominently in the discussions. The leaders exchanged views on leveraging artificial intelligence for developmental purposes and improving service delivery.

They agreed that responsible deployment of AI can help advance inclusive growth, particularly in developing countries, and support public service systems.

India’s support during crisis

President Dissanayake expressed appreciation for India’s assistance following Cyclone Ditwah, which caused significant damage in Sri Lanka. India, acting as a First Responder, provided emergency relief supplies and supported search and rescue operations under ‘Operation Sagar Bandhu’.

The leaders also reviewed progress under India’s USD 450 million assistance package aimed at reconstruction and infrastructure restoration in Sri Lanka. The support is intended to aid long-term recovery and strengthen economic resilience.

Cultural ties and regional cooperation

Beyond economic and strategic matters, the meeting underscored the civilisational and cultural bonds between the two countries. The successful conclusion of the Exposition of the Holy Devnimori relics in Sri Lanka was welcomed as a step that further strengthened people-to-people connections.

Both leaders agreed to continue working closely to advance sustainable development, while contributing to peace and stability in the wider Indian Ocean Region.

The meeting highlighted India’s role as both a technology partner and a regional collaborator, as New Delhi and Colombo seek to build a resilient and forward-looking bilateral partnership.

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Trump signs 10% global tariffs after US Supreme Court setback

Donald Trump has signed a new 10% global tariff order after the US Supreme Court struck down much of his earlier sweeping import duties

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US President Donald Trump has signed a fresh executive order imposing a 10 per cent tariff on imports from countries around the world, just hours after the Supreme Court of the United States struck down much of his earlier sweeping import duties.

The new tariffs, which Trump said will take effect “almost immediately”, are being introduced under a law that limits such measures to 150 days. Describing the move as the beginning of an “adjustment process”, the President signalled that his administration would explore alternative routes to maintain revenue from import duties.

Trump criticises top court ruling

The Supreme Court’s 6-3 decision dealt a significant blow to a key part of Trump’s economic strategy. The ruling invalidated large portions of the administration’s previous tariff framework, prompting a sharp response from the President.

In posts on Truth Social, Trump said certain members of the court “should be ashamed of themselves” and termed the judgment “deeply disappointing”. He argued that the tariff mechanism used by his administration had been “acceptable and proper” and insisted that the new order was legally sound.

Trump also claimed that his use of tariffs over the past year had contributed to economic gains, citing milestones in the stock market. He said the Dow had crossed 50,000 and the S&P had reached 7,000, levels he argued were achieved sooner than expected following his election victory.

Tariffs central to Trump’s policy push

Tariffs have remained a central pillar of Trump’s economic and trade agenda. In April, he had announced “reciprocal” taxes of up to 50 per cent on imports from countries with which the United States runs trade deficits, along with a 10 per cent baseline tariff on most other nations.

He invoked a 1977 law to declare the trade deficit a national emergency, justifying broad import taxes. However, after global backlash, the administration paused the higher reciprocal tariffs for 90 days to allow for negotiations.

According to Trump, several countries agreed to revised trade terms during that period, while others faced steeper duties. He also reiterated claims that tariffs strengthened national security and helped curb fentanyl inflows by 30 per cent when used as penalties against certain countries.

“All of those tariffs remain,” Trump said, adding that other measures would now replace those struck down by the court.

The latest order underscores escalating tensions between the White House and the judiciary, as the administration seeks to preserve a cornerstone of its trade policy while navigating legal constraints.

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