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Trump signs sweeping One Big Beautiful Bill into law, enacts major tax cuts and deportation drive

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US President Donald Trump has signed into law his flagship legislation, dubbed the “One Big Beautiful Bill,” coinciding with the United States’ 249th Independence Day celebrations. The nearly 900-page legislation, passed with the support of Republican leaders in Congress, aims to fulfill a series of promises made during Trump’s presidential campaign — including extending tax cuts, reinforcing immigration enforcement, and bolstering military strength.

Major tax reforms and business incentives

At the heart of the new law is a massive $4.5 trillion package of tax cuts aimed at both individuals and businesses. With previous Trump-era tax reductions set to expire by year-end, this legislation makes many of those cuts permanent. New deductions have also been added — including ones for overtime pay, tipped income, and auto loan interest.

Seniors earning under $75,000 annually will receive a $6,000 deduction, while the child tax credit will increase from $2,000 to $2,200, although lower-income families may not benefit fully. The cap on state and local tax deductions has been raised to $40,000 for five years.

Businesses stand to gain substantially, with 100% immediate write-offs for equipment and research spending. However, critics point out that the wealthiest households will see an average tax benefit of $12,000, while the poorest could lose $1,600 per year due to cuts in welfare programs.

Border wall funding and aggressive deportation plans

Trump’s bill allocates $350 billion to his border security initiatives, which include expanding the U.S.-Mexico border wall and increasing migrant detention capacity to 100,000 beds. The legislation also funds 10,000 new Immigration and Customs Enforcement (ICE) agents, each receiving a $10,000 signing bonus, and a surge in Border Patrol recruitment.

Additionally, new fees will apply to immigrants, especially those applying for asylum, as part of the financial framework supporting Trump’s aim of deporting up to one million individuals annually.

Increased defence spending and missile shield development

The Pentagon receives a major funding boost for naval shipbuilding, weapons development, and personnel welfare. The bill also designates $25 billion for the early development of a U.S.-based “Golden Dome” missile defense system, modeled after Israel’s Iron Dome. The system is expected to be operational by 2029, with an estimated total cost of $175 billion.

Deep cuts to Medicaid and food assistance

In a controversial move, the legislation enforces strict new eligibility criteria for social welfare programs. Adults up to age 65 will need to work at least 80 hours a month to qualify for Medicaid or food stamps, even parents of teenagers. A new $35 co-payment may also be charged to Medicaid users. Planned Parenthood and similar providers that offer abortion services are temporarily barred from receiving Medicaid reimbursements for a year.

The Congressional Budget Office estimates that over the next decade, the bill will increase the federal deficit by $3.3 trillion.

Energy policy rollbacks and space funding

Tax incentives for renewable energy projects have been significantly cut, including an early expiration for electric vehicle tax credits now set for September 30, 2025, rather than 2032.

Conversely, funding has been approved for ambitious space programs, including billions for NASA’s Artemis moon mission and exploration of Mars. The bill also provides $88 million for pandemic response oversight and includes a $5 trillion hike to the national debt ceiling.

Other key provisions

The legislation introduces “Trump Accounts,” a new federal savings initiative for children, with a $1,000 initial deposit. It also imposes a 1% excise tax on money transfers abroad and on university endowments, while eliminating taxes on gun silencers and short-barreled firearms.

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Bangladesh president Shahabuddin accuses Yunus of conspiracy to unseat him

Bangladesh President Mohammed Shahabuddin has accused former chief adviser Muhammad Yunus of attempting to unseat him unconstitutionally and destabilise the country during the interim period.

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Days after the Tarique Rehman-led government assumed office in Bangladesh, President Mohammed Shahabuddin has levelled serious allegations against former chief adviser Muhammad Yunus, accusing him of attempting to remove him from office through unconstitutional means and destabilise Dhaka.

In an interview to a Bengali daily at Bangabhaban, the President claimed that during Yunus’s tenure, efforts were made to create a constitutional vacuum and disrupt the country’s stability.

Allegations of constitutional breach

Shahabuddin alleged that he was excluded from key state matters for nearly one and a half years. According to him, the former chief adviser did not maintain the constitutionally mandated communication with the President.

He claimed that Yunus undertook 14 to 15 foreign visits but did not brief him upon return or provide written updates, which he described as a constitutional obligation. The President also said he was not informed about major state decisions, including agreements signed with the United States ahead of elections.

Responding to questions about ordinances issued during the interim period, Shahabuddin noted that while some may have been necessary, there was little justification for promulgating as many as 133 ordinances.

‘Palace prisoner’ claim

The President further alleged that he was effectively reduced to a “palace prisoner” during the interim government. He said two of his proposed foreign visits — to Kosovo and Qatar — were blocked by the administration at the time.

He also referred to a purported attempt to replace him with a former chief justice through unconstitutional methods, claiming that the proposal was declined on constitutional grounds.

Recalling events of October 22, 2024, Shahabuddin described protests outside the presidential residence as a “terrifying night,” alleging that mobs were mobilised and attempts were made to storm the premises. He said the situation was brought under control following deployment of the military.

Support from armed forces and BNP

Shahabuddin stated that the chiefs of the three armed services assured him of their support, reiterating that he remained the supreme commander of the armed forces. He also credited the leadership of the Bangladesh Nationalist Party (BNP) for helping maintain constitutional continuity during the period of tension.

The allegations come amid political shifts in Bangladesh following the formation of the new government, adding a fresh dimension to the country’s evolving political landscape.

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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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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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