Digest for 26 August, 2025
US Issues Formal Notice for 50% Tariffs on Indian Goods, Effective August 27
The U.S. has issued a formal notice to implement a 50% tariff on all Indian products, effective August 27. The move follows President Trump's executive order penalizing India for its significant purchases of Russian crude oil and military equipment amid the war in Ukraine. The steep tariffs threaten to severely impact Indian exports across multiple sectors. In response, Prime Minister Narendra Modi stated that India will withstand the economic pressure and continue to strengthen its self-reliant economy.
Trump Fires Federal Reserve Governor Lisa Cook, Sparking Legal and Economic Concerns
US President Donald Trump has fired Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. This unprecedented move challenges the long-standing independence of the US central bank and is expected to trigger a significant legal battle. The action could have profound ramifications for the global economy, as it represents a direct attempt by the executive branch to exert control over monetary policy. Cook's removal would also give Trump an opportunity to appoint a more politically aligned governor.
Enforcement Directorate Raids AAP Leader Saurabh Bharadwaj in Hospital Construction Probe
The Enforcement Directorate (ED) has conducted raids at 13 locations in Delhi-NCR, including the residence of Aam Aadmi Party (AAP) leader and former Delhi Health Minister Saurabh Bharadwaj. The searches are part of a money laundering investigation into alleged large-scale corruption, cost escalations, and fund misappropriation in hospital construction projects sanctioned by the Delhi government. The probe follows an FIR filed by the Delhi Police's Anti-Corruption Branch, intensifying the legal challenges faced by the AAP leadership.
Supreme Court Appoints Special Investigation Team to Probe Vantara Wildlife Centre
The Supreme Court has formed a Special Investigation Team (SIT), led by former apex court judge Jasti Chelameswar, to conduct a comprehensive inquiry into the Vantara Zoological Rescue and Rehabilitation Centre in Jamnagar, Gujarat. The SIT will investigate allegations of unlawful animal acquisition, mistreatment, and non-compliance with wildlife protection laws and international trade regulations. The probe follows petitions raising concerns about the facility's operations. Vantara has stated it will extend full cooperation to the investigation.
US Threatens Tariffs on Countries with Digital Services Taxes
US President Donald Trump has threatened to impose "substantial additional tariffs" and technology export restrictions on any country with digital services taxes. In a social media post, Trump argued that such taxes, prevalent in Europe, are discriminatory and designed to harm American technology companies like Google and Meta, while giving a pass to Chinese firms. This move signals a potential new front in global trade disputes, escalating tensions with key allies that have adopted or are considering such levies.