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Trump plans defence spending boost, but why?

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Trump plans defence spending boost, but why?

[vc_row][vc_column][vc_column_text]More military expenditure was part of his campaign policy, but does the US need it? Meanwhile, Democratic lawmakers feel such a big increase could take money out of critical domestic areas such as environmental protection and education

By Sujit Bhar

It is immaterial whether US President Donald Trump gets his billions to boost the US military. It has to pass through Congress and this is one case where a Presidential Executive Order may not be able to cut the funds ice. The issue is of Trump’s intent.

More military spending was part of his campaign policy. Trump is trying to make good this promise, as he tried with the Muslim ban.

However, the question being asked is who is Trump preparing to go to war with? ISIS doesn’t have a single fighter jet, the Russians are too risky to mishandle (and anyway Trump thinks Putin is cool), and a war with China will be mostly fought in economic corridors. Why does the US need such a huge boost?

Trump wanted a massive $ 54 billion boost on the $584 billion-plus that the US spent last fiscal. Trump wants to scrap the hugely mismanaged, and useless F-35 fighter jet project that has reportedly spent almost half a trillion dollars already. To this end, he is right.

While this Lockheed Martin mega-misadventure has bled the military establishment hugely, governors of a multitude of states have been steadfastly rooting for it, because the company provides huge employment in those states, through its several ancillary units. That is why Trump has said that he would like to see the end of the F35 focus and concentrate on the Raptor project instead.

At this point, as it stands, the US defence spending could go up to just $603 billion in total, a growth of just 3 percent, skipping slightly over the inflation rate of 2.5 percent. That is a big comedown from the proposed ten percent increase ($54 billion).

Democratic lawmakers feel such a big increase could take money out of critical domestic spending in environmental protection and education. 
To find the reason behind Trump’s unusual request for a huge boost one would not have to look beyond US boundaries. Trump’s call for new aircraft, new aircraft carriers and new fleets for the Navy makes little sense around the world where raging conflicts are of low intensity and not even involving heavy artillery or missiles.

The US, at this point, should not be scared of any hidden enemy. The Cold War is over and China is still far away in the future, if at all. But there are jobs to be created at home, there are Governors who have become too powerful, to be taught lessons. There are industrial friends to be pacified. Many of them funded his campaign and now they want their pound of flesh.

A defence spending boost could answer a big chunk of such questions. It will also boost the already huge arms export of the US. The US will not benefit in a peaceful world, and Trump, like all presidents before him, knows this well.  When oil is cheap, there is little option to war.

The Democrats are putting a spanner in the works, but the just concluded eight Democratic years had seen huge spending in war preparations. Against whom?

Nobody needs to get answers to such questions. The way it is going the US will be prepared for a full-fledged alien invasion. Maybe Americans need to get employed soon enough for that.[/vc_column_text][/vc_column][/vc_row]

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US lawmakers move resolution to roll back Trump’s 50% tariffs on Indian imports

Three US lawmakers have moved a resolution to end Trump’s emergency declaration that imposed 50% tariffs on Indian goods, calling the move illegal and harmful to trade ties.

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Three members of the US House of Representatives have introduced a resolution seeking to end former President Donald Trump’s national emergency declaration that led to steep tariffs on imports from India. The lawmakers termed the duties illegal and warned that they have hurt American consumers, workers and long-standing India-US economic ties.

The resolution has been moved by Representatives Deborah Ross, Marc Veasey and Raja Krishnamoorthi. It aims to terminate the emergency powers used to impose import duties that cumulatively raised tariffs on several Indian-origin goods to 50 per cent.

What the resolution seeks to change

According to details shared by media, the proposal specifically seeks to rescind an additional 25 per cent “secondary” tariff imposed on August 27, 2025. This was levied over and above earlier reciprocal tariffs, taking the total duty to 50 per cent under the International Emergency Economic Powers Act.

The House move follows a separate bipartisan effort in the US Senate that targeted similar tariffs imposed on Brazil, signalling growing resistance in Congress to the use of emergency powers for trade actions.

Lawmakers flag impact on US economy and consumers

Congresswoman Deborah Ross highlighted the deep economic links between India and her home state of North Carolina, noting that Indian companies have invested over a billion dollars there, creating thousands of jobs in sectors such as technology and life sciences. She also pointed out that manufacturers from the state export hundreds of millions of dollars’ worth of goods to India each year.

Congressman Marc Veasey said the tariffs amount to a tax on American households already facing high costs, stressing that India remains an important cultural, economic and strategic partner for the United States.

Indian-American Congressman Raja Krishnamoorthi described the duties as counterproductive, saying they disrupt supply chains, harm American workers and push up prices for consumers. He added that rolling back the tariffs would help strengthen economic and security cooperation between the two countries.

Background of the tariff hike

Earlier in August 2025, the Trump administration imposed a 25 per cent tariff on Indian goods, which came into effect from August 1. This was followed days later by another 25 per cent increase, citing India’s continued purchase of Russian oil. The combined duties were justified by the administration as a measure linked to Moscow’s war efforts in Ukraine.

Wider push against unilateral trade actions

The latest resolution is part of a broader push by congressional Democrats to challenge unilateral trade measures and reassert Congress’ constitutional authority over trade policy. In October, the same lawmakers, along with several other members of Congress, had urged the President to reverse the tariff decisions and work towards repairing strained bilateral relations with India.

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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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Luthra brothers detained in Thailand after Goa nightclub fire tragedy

Delhi restaurateurs Saurabh and Gaurav Luthra, accused in the Goa nightclub fire that killed 25 people, have been detained in Thailand as India moves to secure their deportation.

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Delhi-based restaurateurs Saurabh and Gaurav Luthra, wanted in connection with the Goa nightclub fire that claimed 25 lives, have been detained in Thailand. Images circulating online show the brothers with their hands tied, holding their passports, as they stand beside Thai police officials.

Brothers held in Phuket as India seeks deportation

The Luthra brothers, who run the Romeo Lane chain across multiple cities and countries, left for Phuket just hours after a massive blaze gutted their ‘Birch by Romeo Lane’ nightclub in north Goa’s Arpora. They are facing charges including culpable homicide not amounting to murder and negligence. Indian agencies are now preparing to push for their deportation so they can be tried in Goa.

Deadly fire triggered by flammable decor and safety lapses

The late-night blaze erupted during a musical event attended by around 100 people, most of them tourists. The use of electric firecrackers during a performance is suspected to have triggered the fire. The venue’s heavy use of flammable décor and absence of functional fire extinguishers or alarms turned it into a death trap.

A narrow access road further delayed fire engines, forcing responders to park nearly 400 metres away, significantly hindering rescue operations. By the time the blaze was doused, 25 people — including five tourists and 20 staff members — had died, most due to toxic smoke inhalation in the basement.

Police pursuit and legal battle

Following the incident, four staff members were arrested and a search began for the Luthras. Investigators from Goa and Delhi discovered the brothers had booked their tickets soon after the fire and left the country within hours. Their business partner, Ajay Gupta, has already been arrested in Delhi.

The brothers have moved a Delhi court seeking anticipatory bail, arguing they were licensees, not owners, of the building. They claimed they were not present at the nightclub when the fire occurred and said their travel to Thailand was for a business meeting, not to evade investigation. Their plea seeks four weeks of protection from arrest upon their return to India.

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