Tag: US

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Beyond

US proposes $1.5 trillion defence budget

The White House has asked Congress to approve a $1.5 trillion defence budget for the US fiscal year 2027. This is one of the largest proposed increases in US military spending ever and comes while the country is involved in war with Iran and handling other global security issues.

If approved, the new budget would be more than 40% higher than last year’s defence spending. The administration says the increase is needed to support ongoing military operations, rebuild weapons stockpiles, and strengthen the country’s armed forces.

The proposed plan includes expanding the navy, producing more ammunition, and improving missile defence systems. Some of the spending would be included as “supplemental” funds that can be passed through separate congressional procedures.

To balance part of the increased defence costs, the White House plans to cut about $73 billion from non-defence programs, around 10% of domestic spending. These cuts would affect areas like education, climate initiatives, housing, and other federal services. Officials say these reductions are necessary to prioritize wartime needs.

The plan still needs Congress’s approval. Lawmakers are expected to debate the budget, make changes, and decide the final amount. Republicans generally support higher defence spending but may argue over how much, while Democrats have raised concerns about cuts to domestic programs.

Experts also warn that such a large defence budget could increase the federal debt, which is already over $39 trillion. Supporters argue, however, that the increase is important to ensure US national security and support allies during a time of global instability.

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US may ease sanctions on Iranian oil

The United States is considering temporarily lifting sanctions on about 140 million barrels of Iranian oil stranded on tankers, aiming to ease sharply rising global energy prices. Treasury Secretary Scott Bessent said the plan could allow the oil to enter international markets for a limited period, providing a short-term supply boost.

The move comes after Iran disrupted shipping in the Strait of Hormuz, a critical route for global oil exports, contributing to surging crude prices. Analysts said releasing Iranian oil could help reduce Brent crude prices, which have remained above $100 per barrel, while attacks on regional infrastructure continue to strain markets.

The proposal would follow a precedent set with stranded Russian crude, allowing temporary sales without altering long-term sanctions policy. Alongside this, the US is considering additional releases from its Strategic Petroleum Reserve to stabilize supplies and manage market pressures.

Critics warn that easing sanctions, even temporarily, could inadvertently support Iran’s military programs. There are also concerns over how US allies, including Japan and other Asian nations, would respond, especially as some fuel exports, such as Chinese jet fuel, have already been halted, tightening regional supply further.

US officials emphasized that any release of Iranian oil would be tightly controlled and temporary, solely aimed at addressing urgent supply disruptions.

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US offers ₹2.4 lakh, free flights for voluntary exit

The United States government has started a new programme to encourage illegal immigrants to leave the country on their own. Under this plan, people who agree to return to their home country will get a free flight and $2,600 (about ₹2.4 lakh) as financial support.

The programme is being run by the Department of Homeland Security (DHS). It is aimed at reducing the need for forced deportations, which are expensive and take more time. Officials believe that offering money and travel support will make more people choose to leave voluntarily.

Migrants who join the scheme will not be arrested or detained. Instead, they can leave the country peacefully. To apply, they need to use the CBP Home mobile app, where they can register and request help for travel and payment.

As part of the campaign, the US government shared advertisements showing famous landmarks from different countries. One of the most talked-about images featured India’s Taj Mahal, encouraging Indian migrants to return home. The message highlighted the benefits of a “fresh start” with financial help and free travel.

The campaign has received mixed reactions. Some people support the idea, saying it is a more humane and cost-effective way to manage immigration. Others have criticised it, especially the use of cultural symbols like the Taj Mahal in promotional material.

According to officials, the programme is much cheaper than forced deportation. Deporting one person can cost over $18,000, while helping someone leave voluntarily costs much less.

The amount offered has also changed over time. It started at $1,000, later increased, and is now fixed at $2,600.

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Corporate

Reliance backs first new US oil refinery in 50 years

US President Donald Trump has announced plans to build a new oil refinery in Texas with investment support from Reliance Industries. The refinery, planned at the Port of Brownsville, could be the first new oil refinery built in the United States in nearly 50 years.

The project is expected to have a long-term economic impact of about $300 billion. It will be developed by a company called America First Refining, with financial backing from Reliance, India’s largest private sector company.

According to Trump, the refinery will strengthen the country’s energy sector and increase domestic fuel production. He also thanked India and Reliance for their participation in the project, describing it as a major step in boosting energy cooperation between the two countries.

The facility will mainly process US shale oil and is expected to increase the country’s refining capacity. Once operational, it could help meet domestic fuel demand and also support exports.

Officials say the project could create thousands of jobs during construction and operation while also bringing economic growth to South Texas.

The announcement comes at a time when global energy markets are facing uncertainty due to geopolitical tensions and supply concerns. Expanding refining capacity is seen as an important step toward strengthening energy security.

If completed, the refinery would mark a major development for the US energy industry and highlight growing business ties between American companies and Indian firms such as Reliance Industries.

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Beyond

US grants India 30-day Russian crude oil import

The United States has granted India a 30-day waiver to continue importing Russian crude oil that is currently stranded at sea, providing crucial short-term relief for Indian refiners. The waiver, effective until early April 2026, allows India to legally receive shipments already loaded onto vessels, helping to maintain uninterrupted fuel supplies amid rising global uncertainty.

The move comes against the backdrop of tensions in the Middle East, particularly around the Strait of Hormuz, a key route for international oil shipments. Disruptions in this region have created anxiety in global energy markets, with the potential to affect oil availability and pricing worldwide. By temporarily permitting these imports, the waiver gives Indian refiners time to adjust supply chains and manage domestic fuel demand.

US officials emphasized that the waiver is strictly short-term and limited to oil already in transit. It does not signal a broader relaxation of sanctions on Russian energy exports. At the same time, the waiver shows India’s role as a significant partner in global energy trade and highlights the delicate balance between meeting immediate domestic needs and navigating international regulations.

The decision also reflects India’s careful approach to energy security, ensuring that nearly 40% of its crude imports, which typically pass through the Hormuz route, are not disrupted. By securing a short-term supply while exploring alternative options, India is able to maintain stability in its domestic energy markets even amid geopolitical volatility.

Indian refiners have reportedly already begun arranging delivery of millions of barrels of Russian crude that had been awaiting clearance, ensuring that domestic fuel production remains unaffected. Analysts say the waiver provides logistical relief but does not change India’s longer-term energy strategy, which continues to focus on diversification of oil sources, including increasing imports from the United States.

Also Read: US to raise global tariff to 15%, says Scott Bessent

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Beyond

US halts use of Anthropic AI

US President Donald Trump has ordered federal agencies to stop using artificial intelligence tools developed by Anthropic, marking a sharp escalation in tensions between the administration and the fast-growing AI sector.

The directive requires departments to begin phasing out Anthropic’s systems, including those already embedded in administrative and defence operations. According to officials familiar with the decision, the move follows weeks of disagreement over limits placed on the company’s flagship AI model, Claude, particularly in military contexts.

At the heart of the conflict are safeguards built into Anthropic’s technology. The company has imposed restrictions designed to prevent applications such as mass domestic surveillance and fully autonomous weapons. Representatives from the Department of Defense have argued that those constraints reduce operational flexibility and complicate legitimate national security planning.

Trump described the decision as necessary to protect executive authority and ensure that government agencies are not constrained by private-sector policies. The administration is reportedly reviewing existing contracts and examining whether additional regulatory steps could follow.

Anthropic’s chief executive, Dario Amodei, defended the company’s approach, stating that its safety guardrails are central to responsible AI deployment. He warned that removing such protections could lead to unintended and potentially dangerous outcomes. The firm has indicated it may pursue legal avenues if further punitive measures are imposed.

The dispute has drawn significant attention across Silicon Valley, where AI companies are increasingly partnering with government agencies.

Also Read: OpenAI wins Pentagon deal as Donald Trump clashes with Anthropic

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Beyond

US hits Indian solar imports with 126% duty

The United States has imposed a preliminary countervailing duty of up to 126% on solar cell imports from India, alleging that Indian manufacturers benefited from government subsidies that gave them an unfair pricing advantage in the American market.

The decision follows an investigation by the US Department of Commerce into whether Indian solar producers received financial support that allowed them to sell their products at lower prices than domestic manufacturers in the US. The probe found that multiple subsidy programmes, including incentives linked to manufacturing and export promotion, enabled Indian firms to undercut American competitors.

The duties are provisional and will be reviewed before a final determination is made. However, the move is expected to significantly impact Indian solar exports to the US, one of the key overseas markets for the country’s renewable energy equipment.

The tariff varies by company, with some exporters facing the full 126% levy. If confirmed in the final ruling, the measure could sharply reduce the price competitiveness of Indian solar cells and modules in the US market.

The development comes at a time when India and the US are engaged in negotiations to deepen trade ties, and it could become a contentious issue in bilateral discussions. Industry observers say the decision may disrupt supply chains and slow the growth of India’s solar manufacturing sector, which has been expanding under government-backed production-linked incentive (PLI) schemes.

Indian exporters have argued that the support they receive is aimed at building domestic manufacturing capacity and is consistent with global clean energy goals. They also point out that India is an important player in the global transition to renewable energy and that trade restrictions could raise costs for solar deployment.

The US International Trade Commission will now examine whether the imports have caused material injury to American manufacturers. A final decision on the duties is expected later this year.

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US edits India trade deal factsheet

The White House has revised its factsheet on the proposed India-US interim trade deal, making key changes to language on agricultural imports, investment commitments and digital taxation following concerns flagged by New Delhi.

In the earlier version of the document, the US had stated that India would cut or eliminate tariffs on a list of American agricultural products, including tree nuts, fruits, soybean oil, wine, spirits and “certain pulses.” The mention of pulses,  a politically sensitive crop in India,  drew attention because India is the world’s largest producer and consumer of lentils, chickpeas and other pulses, and domestic farmers depend heavily on tariff protection.

In the updated factsheet, the specific reference to “certain pulses” has been removed. Instead, the language now broadly mentions improved access for a “wide range of US agricultural products,” without naming individual commodities.

Another notable revision relates to India’s proposed purchases of American goods. The original text said India was “committed” to buying more than $500 billion worth of US products over the next five years, including energy, coal and technology equipment. The revised version softens this to say India “intends” to purchase such goods, signalling that the figure is indicative rather than a binding obligation. Mentions of agricultural goods within this purchase commitment have also been omitted.

Changes were also made to the section on digital trade. The earlier draft suggested India would remove or roll back its digital services tax. The revised document now says both countries will work toward negotiating digital trade rules, bringing the language in line with prior joint statements.

Sources indicated that the corrections were made to accurately reflect what had been mutually agreed upon.

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Beyond

US soybean prices drop as Brazil boosts supply

US soybean prices fell on Monday, stepping back from a recent rise that pushed them to multi-month highs. The main reasons were profit-taking by traders and an increasing supply from Brazil’s soybean harvest, which is putting downward pressure on global prices.

On the Chicago Board of Trade, the March soybean contract dropped from last week’s high of around $11.37 per bushel. Prices had jumped earlier after hints that China might buy more U.S. soybeans, which are a major export for American farmers.

However, China has not yet made large purchases. Brazilian soybeans are cheaper and more available, especially during their harvest season. This is making Chinese buyers prefer Brazilian soybeans over US supplies.

Brazil is expecting a record soybean crop this year, with strong exports already underway. These large supplies are reducing the need for China to buy more from the US, even with recent diplomatic talks encouraging sales.

US soybeans are still more expensive than Brazilian ones, which makes them less attractive for Chinese buyers, even though some small purchases have been made.

Other crops like corn and wheat also saw slight price drops, as there were no new factors to push prices higher.

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China’s BYD challenges Trump’s tariffs at US court

Chinese electric vehicle and clean-energy major BYD has taken a significant legal step in the United States, filing a lawsuit against the federal government to challenge tariffs imposed by President Donald Trump.

The case, filed in the US Court of International Trade in New York, seeks refunds for import duties paid since April and questions the legal basis used to impose the levies. BYD’s US subsidiaries argue that the tariffs were introduced under the International Emergency Economic Powers Act (IEEPA), a law meant for national security emergencies, not for imposing broad trade barriers.

The emergency law does not explicitly allow the government to levy import tariffs. BYD is asking the court to order the repayment of duties already paid and to safeguard its right to future refunds if the tariffs are ruled invalid.

While BYD does not sell passenger cars in the US, it has a growing footprint in the country through its electric buses, trucks, batteries, energy storage systems and solar products. Its manufacturing facility in Lancaster, California, employs around 750 workers, making the company an active contributor to local jobs and clean-energy infrastructure.

The legal move places BYD among a rising number of global companies challenging Trump’s trade policies. The dispute also comes as the US Supreme Court considers a separate case that could ultimately decide whether emergency powers can be used to justify such tariffs.

For Washington, the case revives a sensitive debate around trade protectionism and executive authority. For BYD, it is both a financial and strategic decision, aimed at recovering costs while seeking clarity on the rules governing global trade.

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