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US-China trade war hots up, Trump orders steep tariff hike on remaining imports from China

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US-China trade war hots up, Trump orders steep tariff hike on remaining imports from China

[vc_row][vc_column][vc_column_text]The trade war between United States and China turned hotter as the American President Donald Trump on Friday, May 10, ordered a tariff hike on almost all remaining imports from the world’s second-biggest economy.

Beijing said talks would continue to resolve the row, said reports.

Trump’s move came after he had been tweeting that two days of trade talks in Washington had been “candid and constructive.” The businessman-turned-politician then changed tack and followed through on a threat he had been making for months, reported news agency AFP.

“The President… ordered us to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion,” US Trade Representative Robert Lighthizer said in a statement, the report said.

The move came less than 24 hours after Washington increased punitive duties on $200 billion worth of Chinese imports, raising them to 25 percent from 10 percent.

Details on the process for public notice and comment will be posted Monday, ahead of a final decision on the new tariffs, Lighthizer said. They were not expected to go into effect for several months, said the AFP report.

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The latest Trump move came as the Chinese Vice Premier concluded his two days of trade talks with the US team led by Lighthizer.

In a series of tweets, Trump described the talks as candid and constructive, but indicated taking a tough approach against massive imbalance of trade with China.

“Over the course of the past two days, the United States and China have held candid and constructive conversations on the status of the trade relationship between both countries,” he said.

“The relationship between President Xi and myself remains a very strong one, and conversations into the future will continue,” he added.

“In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!” Trump said.

Tariffs will bring in “far more” wealth to the United States than even a phenomenal deal of the traditional kind. “Also, much easier & quicker to do. Our Farmers will do better, faster, and starving nations can now be helped. Waivers on some products will be granted, or go to new source!” he said in another tweet.

“If we bought 15 Billion Dollars of Agriculture from our Farmers, far more than China buys now, we would have more than 85 Billion Dollars left over for new Infrastructure, Healthcare, or anything else. China would greatly slow down, and we would automatically speed up!” Trump said.

Referring to his latest direction, Trump said that the process has begun to place additional Tariffs at 25 percent on the remaining 325 Billion Dollars. “The US only sells China approximately 100 Billion Dollars of goods and products, a very big imbalance,” he said.

“With the over 100 Billion Dollars in Tariffs that we take in, we will buy agricultural products from our Great Farmers, in larger amounts than China ever did, and ship it to poor & starving countries in the form of humanitarian assistance. In the meantime, we will continue to negotiate with China in the hopes that they do not again try to redo deal!” said the US President.

Also Read: After TIME article on Modi, its author’s Wikipedia page vandalised

Trump said he is in no rush to conclude trade talks with China.

“Talks with China continue in a very congenial manner – there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25 percent on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S….,” he said.

“We have lost 500 Billion Dollars a year, for many years, on Crazy Trade with China. NO MORE!” Trump said.

Since last year the United States and China have exchanged tariffs on more than $360 billion in two-way trade, gutting US agricultural exports to China and weighing on both countries’ manufacturing sectors.

The higher duty rates imposed on Friday will hit a vast array of Chinese-made electrical equipment, machinery, auto parts and furniture.

The International Monetary Fund has warned the conflict and the loss of confidence it creates will have a wider impact on the global economy and is a major risk to growth.

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PM Modi and Netanyahu pledge deeper defence, trade ties during Israel visit

PM Narendra Modi and Benjamin Netanyahu pledged to deepen defence, trade and connectivity ties during Modi’s visit to Israel, with missile deals and IMEC discussions on the agenda.

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Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu have reaffirmed their commitment to strengthening defence, trade and security cooperation, marking a significant step forward in India-Israel relations during Mr Modi’s visit to Tel Aviv.

Addressing Israel’s parliament, the Knesset, Mr Modi described defence cooperation as an “important pillar” of the bilateral partnership and stressed the need for closer collaboration in an increasingly uncertain global environment.

“In today’s uncertain world, a strong defence partnership between trusted partners like India and Israel is of vital importance,” he said.

Defence deal likely on agenda

During the visit — Mr Modi’s first to Israel in nine years — discussions are expected to include a major order for Israeli-made missile systems. An official in New Delhi familiar with the matter indicated that details of the potential deal may not be publicly disclosed, as both governments are keen to keep the spotlight on broader strategic ties.

India’s Ministry of External Affairs has not commented on the reported missile purchase.

Israel has long been among India’s key arms suppliers. Over the years, the defence relationship has evolved into joint manufacturing projects, including drones and missile systems. Ahead of the visit, Israel’s Ambassador to India, Reuven Azar, said both sides are working towards a more comprehensive defence and security framework that could open doors for cooperation on more sensitive projects.

Focus on trade and investment

Trade and investment featured prominently in the leaders’ discussions. Mr Modi said both governments are committed to expanding bilateral trade, boosting investment flows and promoting joint infrastructure projects.

Israeli negotiators recently travelled to India to begin formal talks on a proposed free-trade agreement, building on terms agreed in November. Such a pact could provide Israel greater access to one of the world’s fastest-growing economies.

According to Israel’s Economy and Industry Ministry, India is Israel’s second-largest trading partner in Asia, with bilateral trade estimated at $5 billion in 2025, excluding defence transactions.

India is also the largest buyer of Israeli defence equipment, accounting for up to 34% of Israel’s total arms exports, according to data from the Stockholm International Peace Research Institute.

Regional security and Gaza ceasefire

The visit comes amid shifting regional alliances and ongoing security challenges. Referring to last year’s ceasefire in Gaza, Mr Modi said the truce created an opportunity for closer cooperation.

He also welcomed the US-brokered peace plan for Gaza, later endorsed by the United Nations, saying it holds the promise of a just and durable peace, including progress on the Palestine issue. However, uncertainty remains over the future of the truce with Hamas, with key governance and security questions yet to be resolved.

Strategic observers note that both leaders see their countries as operating in complex neighbourhoods marked by security threats and geopolitical shifts.

Connectivity push through IMEC

Connectivity initiatives also featured in the discussions. Mr Netanyahu told the Knesset that India and Israel are working on developing a maritime and land corridor linking India to Israel’s port of Haifa and onward to Europe.

The plan builds on the India-Middle East-Europe Economic Corridor initiative unveiled in September 2023. Although the outbreak of the Israel-Hamas conflict soon after raised concerns about the project’s future, Israeli officials have indicated that the corridor remains viable.

Haifa port, partly acquired by India’s Adani Group, is expected to play a key role as the Mediterranean endpoint of the corridor.

As India and Israel seek to reinforce strategic, economic and security ties, the visit underlines the growing convergence between New Delhi and Tel Aviv in defence, trade and regional connectivity.

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Canada softens stance on alleged Indian interference ahead of PM Carney’s India visit

Canada appears to ease its earlier allegations of Indian interference as PM Mark Carney heads to India to strengthen trade and strategic ties.

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Canada appears to be easing its earlier allegations of Indian interference as Prime Minister Mark Carney prepares for a key visit to India aimed at rebuilding commercial and diplomatic ties.

Senior officials in Ottawa indicated that the Canadian government maintains “mature and robust discussions” with the Government of India on concerns related to foreign interference. They also emphasised that Canada has strong safeguards in place to protect its democratic institutions.

According to officials quoted by media, the Prime Minister would likely not be travelling to India if Ottawa believed New Delhi was actively interfering in Canada’s democratic processes. The remarks suggest a noticeable shift from the strong accusations levelled last year.

Officials said there has been sustained engagement with the government of Narendra Modi at multiple levels, including senior officials, ministers and leadership-level interactions. They expressed confidence that the discussions provide a foundation for further constructive dialogue.

At the same time, a senior official reiterated that Canada maintains “no tolerance” for foreign interference in its domestic affairs.

From allegations to engagement

The recent comments contrast with statements made last June by the Canadian Security Intelligence Service (CSIS), which accused India of being among the primary actors involved in foreign interference and espionage activities in Canada.

CSIS had also described alleged links between Indian authorities and the 2023 killing of Hardeep Singh Nijjar in Vancouver as a “significant escalation” in India’s actions against the Khalistan movement.

India firmly rejected those accusations. The dispute triggered a diplomatic standoff, with both countries expelling senior diplomats from Ottawa and New Delhi in a tit-for-tat move.

Carney’s push to rebuild ties

Prime Minister Carney’s visit to India is being positioned as part of a broader Indo-Pacific outreach and a more pragmatic foreign policy approach. His trip will begin in Mumbai before he heads to New Delhi for talks with Prime Minister Modi.

The visit comes as both nations seek to stabilise relations that deteriorated sharply following Canada’s allegations over Nijjar’s killing — claims that New Delhi strongly denied.

Carney’s office has said discussions will centre on expanding cooperation in trade, energy, technology, artificial intelligence, talent mobility, culture and defence.

Growing trade partnership

India is currently Canada’s seventh-largest trading partner in goods and services. Annual bilateral trade exceeds $21 billion, according to Canadian government data.

The two sides had previously agreed to resume negotiations on a proposed free-trade agreement, targeting bilateral trade of $50 billion by 2030.

More than 600 Canadian companies operate in India across sectors such as information technology, banking, health sciences and financial services. Key Indian exports to Canada include pharmaceuticals, gems and jewellery, precious stones and seafood.

Diplomatic ties show signs of recovery

Canada hosts approximately 2.8 million people of Indian origin. Nearly 400,000 Indian students are enrolled in Canadian universities, making them the largest group of international students in the country.

Canada is also home to the largest Sikh population outside India, including some fringe separatist elements advocating for Khalistan.

Relations between the two countries began to improve after Carney assumed office in March 2025, with envoys restored and diplomatic engagement gradually resuming.

The upcoming visit is being viewed as a significant step toward stabilising ties and advancing economic cooperation amid shifting global trade dynamics and uncertainties linked to policies under US President Donald Trump.

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PM Modi reaffirms support for Israel, recalls 26/11 victims in Knesset address

Addressing Israel’s parliament, PM Narendra Modi reaffirmed India’s support for Israel, condemned terrorism, and recalled the 26/11 Mumbai attacks.

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Prime Minister Narendra Modi on Wednesday addressed the Knesset, expressing solidarity with Israel and condemning terrorism, while highlighting the growing partnership between the two nations.

Calling it a rare honour, Mr Modi said he brought greetings from 1.4 billion Indians and described his address as a symbol of the warmth between the two democracies.

Condolences over October 7 attack

The Prime Minister conveyed condolences for the lives lost in the October 7 attack by Hamas. He said India shares Israel’s grief and stands firmly with the country “with full conviction in this moment and beyond”.

“Nothing can justify terrorism,” Mr Modi said, adding that India too has suffered from terror attacks for decades. He recalled the 26/11 Mumbai attacks and the innocent lives lost, including Israeli citizens, and reiterated India’s policy of zero tolerance towards terrorism without double standards.

Reference to Abraham Accords and regional hope

Referring to the Abraham Accords, Mr Modi said India had applauded the vision and courage shown at the time. While noting that the regional situation has since become more challenging, he stressed the importance of sustaining hope for peace.

Historic ties and expanding partnership

The Prime Minister said he was the first Indian Prime Minister to visit Israel nine years ago and expressed happiness at returning. He also noted that he shares his birth date — September 17, 1950 — with the day India formally recognised Israel.

Recalling his earlier visit to Israel as Gujarat Chief Minister in 2006 and his 2017 trip as Prime Minister, Mr Modi said bilateral ties were elevated to a Strategic Partnership during the latter visit. Since then, he added, engagement has broadened across sectors.

He pointed to cooperation in innovation, mentioning the inauguration of the iCreate Technology Business Incubator in 2018 with then Prime Minister Benjamin Netanyahu. The incubator, he said, has since supported nearly 900 start-ups.

Shared civilisational values

Mr Modi said Jewish communities have lived in India without fear of persecution and have preserved their faith while participating fully in society. He described this as a matter of pride.

Highlighting philosophical parallels, he referred to the Israeli concept of “Tikkun Olam”, meaning healing the world, and India’s belief in “Vasudhaiva Kutumbakam”, which sees the world as one family. Both traditions, he said, call for compassion and moral courage beyond immediate boundaries.

He also acknowledged the contribution of Indian caregivers and skilled workers in Israel, noting their courage and dedication, including during the October 7 crisis.

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