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US Sanction Bill to Trigger another War-like Situation

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US Sanction Bill to Trigger another War-like Situation

[vc_row][vc_column][vc_column_text]Trump says, despite concerns, signed for the unity of the country

The new sanction bill signed by US President Donald Trump on Wednesday against Russia, Iran and North Korea has triggered another war of words which may worsen the already tense situation across the world.

Russian Prime Minister Dmitry Medvedev, in one of his facebook posts on Wednesday described the US move as a humiliating defeat for Trump. “The American establishment has won an overwhelming victory over Trump,” he said. He emphasized that the stiff new sanctions amount to the declaration of an “all-out trade war against Russia,” but added that it will cope with the challenge and only get stronger.

“The hope for improving our relations with the new US administration is now over. Trump’s administration has demonstrated total impotence by surrendering its executive authority to Congress in the most humiliating way,” Medvedev said.

However, he expressed Russia’s determination to continue to develop and progress saying, “We will continue to work calmly to develop our economy and social sphere, deal with import substitution and solve important government tasks counting primarily on ourselves.” He said, “We have learned how to do it over the past few years.”

Reacting to the Congress passing the bill, last Friday, with overwhelming veto-proof numbers, Russian President Vladimir Putin had ordered expulsion of over 750 personnel from US missions in the country for bringing down their number to 450, equal to the Russians posted in their missions in US.

Earlier, in December 2016, Barrack Obama administration had expelled 35 Russian diplomats and shut down two Russian premises in the US after surfacing of  allegations about Russian meddling in the 2016 Presidential election.

The Russian foreign Ministry has also warned of possible new retaliatory measures saying, “We naturally reserve the right for other counter- measures.” It said that sanction bill reflects a “short sighted and dangerous” attempt to cast Russia as an enemy and would erode global stability. It further said that “no threats or attempts to pressure Russia will force it to change its course or give up its national interests.”

Meanwhile, Iran, another victim of the US sanction bill, has said that signing of first anti Iran sanctions by President Trump was an attempt to destroy the country’s nuclear deal with world powers.

This was announced by Abbas Araghchi, Deputy foreign Minister for Legal and International Affairs shortly after Trump signed into law a bill by Congress that imposes new sanctions against Russia, Iran and North Korea.

In July 2015, Iran and P5+1 group of countries – the US, the UK, France, Russia and China plus Germany signed the nuclear deal. As a result nuclear related sanctions were lifted against Iran in exchange of limiting its nuclear work.

The Iranian official was quoted saying, “The US’ main goal for imposing the sanctions against Iran is to destroy the JCPOA and we will react very intelligently to these measures.”

Araghchi said that a committee chaired by President Hassan Rouhani has taken several decisions regarding the reactions towards Washington’s provocative measures. He said that US move shows that US believes the nuclear deal has empowered Iran in the region. He noted that imposing fresh sanctions on Iran is an attempt to reduce Tehran’s benefits from the nuclear accord and to negatively affect its “successful implementation”.

Moreover, North Korea has also denounced the US “reckless move”.  The spokesman of DPRK foreign Ministry said on Thursday, “Unfortunately US still thinks that its military bluff would work, and it seems like the US has not yet realized that its opponent is a mighty nuclear power which is capable of smashing the US, an aggressor state into smithereens.”

The spokesperson further said that any form of military threat or blackmail by the US can never scare the DPRK and, on the contrary, it will only redouble the resolve of the Korean army and people to annihilate the enemy: “If the US is stupid enough to shove its stinky face on this land again and keep brandishing its nuclear club despite our repeated warnings, the DPRK will teach the US some manners with the strategic nuclear force that it had so far shown to the world.”

However, South Korea has hailed Trump’s ratification of the bill and voiced hope that it could quicken North Korea’s denuclearization.

Meanwhile, President Donald Trump, his bill for the sake of national unity.” He said, “Since this bill was first introduced, I have expressed my concerns to Congress about the many ways it improperly encroaches on Executive power, disadvantages American companies, and hurts the interests of our European allies.”[/vc_column_text][/vc_column][/vc_row]

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India considers tax relief to attract foreign investors amid Iran war impact

India is evaluating tax incentives, including a possible capital gains tax exemption on government securities for foreign investors, to support capital inflows amid economic pressures linked to the Iran war.

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India is considering a set of measures aimed at attracting more foreign investment as the ongoing Iran war continues to create pressure on the country’s economy, according to reports citing government sources. One of the key proposals under discussion is the removal of capital gains tax on investments made by foreign portfolio investors (FPIs) in government securities.

The move comes at a time when geopolitical tensions in West Asia have pushed up global oil prices, weakened investor sentiment and increased pressure on the Indian rupee. India, which imports a significant share of its crude oil requirements, has been among the countries closely monitoring the economic fallout from the conflict.

Government exploring ways to boost capital inflows

Officials are reportedly evaluating tax-related incentives to make Indian debt markets more attractive to overseas investors. The proposed exemption on capital gains from government securities is aimed at encouraging foreign portfolio investment and supporting capital inflows during a period of heightened global uncertainty.

The government is seeking to counter the impact of foreign capital outflows that have intensified amid concerns over the Iran conflict and its implications for energy markets and global economic growth.

Rupee and markets under pressure

Recent weeks have seen increased volatility in financial markets, with foreign investors pulling money out of Indian equities. Analysts have linked part of the pressure on the rupee to rising oil prices and continued overseas investor withdrawals.

Market participants believe that measures aimed at attracting foreign investment into government securities could help improve investor confidence and provide support to the domestic currency.

Broader economic concerns

The Iran war has added to concerns about inflation, economic growth and India’s external sector. Higher energy prices can increase import costs and put pressure on inflation, while sustained foreign capital outflows may affect financial market stability.

While no final decision has been announced, discussions on easing tax rules for foreign investors reflect the government’s efforts to strengthen capital inflows and cushion the economy from external shocks.

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US proposes new tariffs on India over forced labour concerns amid trade negotiations

The United States has proposed additional tariffs on imports from India and 59 other economies following a Section 301 investigation into forced labour-related trade concerns.

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Donald Trump statement

The United States has proposed imposing additional tariffs on imports from India and 59 other economies after concluding that these countries have not taken sufficient steps to prevent the importation of goods allegedly linked to forced labour. The proposal was announced by the Office of the US Trade Representative (USTR) as part of an investigation conducted under Section 301 of the US Trade Act.

According to the USTR’s findings, India could face an additional tariff of 12.5% on goods exported to the United States. The proposed measure is part of a broader plan targeting 60 economies, with tariff rates ranging between 10% and 12.5% depending on the findings related to each country.

India among countries facing higher tariff proposal

The USTR said India had not effectively enforced restrictions on imports made using forced labour, describing the issue as a burden on US commerce. The agency argued that inadequate enforcement by major trading partners creates unfair competition for American workers and businesses.

While countries including Canada, Mexico, the European Union and the United Kingdom are proposed to face a 10% tariff, India is among a larger group of economies that could be subjected to a 12.5% duty under the recommendation.

Proposal comes during India-US trade discussions

The tariff proposal has emerged while Indian and US officials are engaged in trade negotiations aimed at strengthening economic ties between the two countries. A US delegation led by Assistant USTR Brendan Lynch is currently holding discussions with Indian officials in New Delhi.

India’s Commerce Ministry has indicated that discussions with the United States on the matter are continuing and noted that the proposed tariffs have not yet been finalised. The USTR has invited public comments on the proposal until July 6, with a public hearing scheduled for July 7 before any final decision is taken.

Certain products may remain exempt

The proposed tariffs include exemptions for several categories of goods, including some energy products, pharmaceuticals, rare earth materials and selected agricultural commodities. Additional details regarding sector-specific measures, including proposed textile-related actions, are expected to be released separately.

The latest move follows a Section 301 investigation launched earlier this year into forced labour concerns across global supply chains. Any final decision on imposing the tariffs will be made after the consultation process is completed.

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Trump reportedly rebukes Netanyahu over Lebanon strikes amid ceasefire concerns

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US President Donald Trump reportedly delivered a sharp rebuke to Israeli Prime Minister Benjamin Netanyahu during a phone call over Israel’s military actions in Lebanon, as concerns grow that renewed hostilities could jeopardise fragile diplomatic efforts in the region.

According to multiple reports, Trump expressed frustration over Israeli strikes linked to ongoing tensions with Hezbollah in Lebanon. The reported exchange came at a sensitive time, with Washington attempting to prevent further escalation while also pursuing broader diplomatic discussions involving Iran.

Reports point to unusually tense exchange

Sources cited in international reports said Trump used unusually strong language during the conversation, warning that continued military actions risked damaging efforts to stabilise the situation. One report claimed Trump told Netanyahu that his actions were hurting Israel’s international standing and complicating diplomatic initiatives.

The reported disagreement followed Israeli operations against Hezbollah-linked targets in Lebanon. While Israeli officials argued that the actions were a response to security threats and ceasefire violations, the US administration has been pushing for restraint to avoid a wider regional conflict.

Lebanon fighting threatens broader diplomatic efforts

The latest tensions come amid efforts to maintain a ceasefire framework between Israel and Hezbollah. US officials have been involved in discussions aimed at reducing hostilities and preventing attacks on major Lebanese population centres, including Beirut.

Reports indicate that Trump personally intervened to discourage further escalation and support negotiations intended to preserve regional stability. Hezbollah has reportedly signalled a willingness to consider a broader ceasefire arrangement if reciprocal commitments are made.

Differing public messages after the call

Despite reports of a heated conversation, Trump later suggested publicly that discussions had been constructive and that progress had been made toward reducing tensions. Netanyahu, however, maintained that Israel would continue to respond to security threats and would not alter its overall approach toward Hezbollah if attacks persisted.

The developments highlight growing challenges facing diplomatic efforts in the Middle East, where the conflicts involving Israel, Lebanon and Iran remain closely interconnected. Analysts say any major escalation in Lebanon could further complicate ongoing negotiations and increase instability across the region.

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