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Editorial

India squaring up to Trump tariffs

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Thursday 28th August, 2025

The doubling of US tariffs up to 50% on Indian goods took effect yesterday. This includes an additional 25% tariff imposed as a punitive measure for buying oil from Russia. The massive tariff hike is bound to send India’s export sector reeling; among the Indian exports affected by the Trump tariffs are chemicals, furniture, footwear, jewellery and garments. India now finds itself in the same bracket as China and Brazil, where US tariffs are concerned. Curiously, the US has given China an easier ride; its tariff linked to Russian oil does not apply to China, the largest purchaser of that product. Self-interest has obviously driven the US to spare China, but the fact remains that it has punished its strategic partner, India, with whose support it is trying to hold rising China in check geopolitically.

The US has no friends as such; it treats all its allies like lackeys, and makes them feel important only when it needs to use them to further its geostrategic interests. It forged close ties with India as part of its strategy to counter China’s global dominance, but has laid bare its true face by imposing a ‘punitive’ tariff on India. India should be able to do what is good for it as the fastest growing major economy, which is thirsting for oil. Any country that becomes a willing cat’s paw for the US should learn from Ukraine’s predicament. Ukraine provoked Russia at the behest of the US-led Western bloc, but the West now considers the provision of military assistance to Ukraine a favour done to that war-torn nation.

Thankfully, the US tariff hike has jolted India into realising the need to mend fences with China. India’s response to the new US tariffs taking effect was not immediately known, but the Modi government has reportedly taken steps to grant financial assistance to the vulnerable exporters and help them open new markets in China, Latin America, West Asia, Europe and elsewhere.

It will be a gargantuan task for India to cushion the US tariff shock, whose political fallout will also be huge, given the economic cost and anticipated job losses. According to international media reports, it was not possible to monitor the reaction of the Indian bourses immediately as they were closed for a Hindu festival, but ‘equity benchmarks logged their worst session in three months on Tuesday after a Washington notification confirmed the additional tariff’.

The Indian rupee has also been on a losing streak. These are no doubt disturbing signs, but the Indian economy is resilient enough to absorb such shocks. However, it will be in India’s interest to have further negotiations with the US to obtain a tariff reduction. The Trump administration has earned notoriety for about-turns, which are legion, and it is possible that President Donald Trump will make another U-turn by way of a reconciliatory gesture as the US has to factor in its strategic partnership with India; the thawing of relations between India and China is a disconcerting proposition for Washington. However, the US has made the mistake of seeking to browbeat a formidable strategic ally, and letting the whole world know once again that it does not hesitate to further its own interests even at the expense of its close allies.

Meanwhile, the Indian media has reported, quoting a German newspaper, that Prime Minister Narendra Modi has been avoiding calls from President Trump during the last few weeks amidst escalating trade tensions between the US and India. Modi is in an embarrassing position, unable to leverage his ‘special’ relationship with President Trump to obtain a substantial tariff reduction. Time was when he and Trump were seen locking each other in a bear hug whenever they met. India is powerful enough for PM Modi to register his protest with the White House by means of a phone call snub, as it were, but one may recall that the leader of a much smaller state did likewise about 16 years ago.

In 2009, President Mahinda Rajapaksa was left with no alternative but to avoid calls from the White House amidst western pressure mounting on his government to stop the Vanni war and spare the LTTE leadership. He also told the Foreign Ministers of France and the UK where to get off when they rushed here to stop the war. He incurred the wrath of the West, but Sri Lanka gained; democracy has been rekindled in the former LTTE-held areas. No wonder the western powers are out for his scalp. PM Modi is lucky that he is too powerful to be bullied in that manner.

How India is planning to handle the US tariffs in the long run remains to be seen, but it has so far stood up to the Trump tariffs admirably.



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Editorial

Legislature’s meek submission to overbearing Executive

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Friday 24th April, 2026

The Opposition is intensely resentful that the government has thwarted its attempt to have President Anura Kumara Dissanayake, who is also Minister of Finance, summoned before the Parliamentary Select Committee (PSC) probing the green-channelling of 323 red-flagged freight containers in the Colombo Port in January 2025. When the Opposition members of the PSC proposed that President Dissanayake be summoned, their government counterparts put the proposal to a vote and defeated it.

The Opposition’s abortive bid was not devoid of politics, but Sri Lanka Customs, which released the aforementioned containers without mandatory inspections, is under the Finance Ministry. Therefore, the Finance Minister is accountable to Parliament and must answer questions from the container PSC, as it were.

The dispute between the government and the Opposition over the container scandal has more to it than a mere political argy-bargy. It reflects a deeper constitutional issue. The Constitution requires the President to attend Parliament, but frequent politically strategic interventions by him or her dilutes the spirit of the separation of powers and strengthens the Executive’s dominance over the legislature. This practice is bad for the wellbeing of democracy. The President has used, if not misused, Articles 32 and 33 of the Constitution to dominate Parliament in this manner over the years.

The JVP, on a campaign for abolishing the Executive Presidency, played a pivotal role in introducing the 17th, 19th and 21st Amendments to the Constitution to reduce the executive powers of the President, but ensconced in power, it is now silent on its pledge to restore a parliamentary system of government.

The Opposition has claimed that President Maithripala Sirisena testified before the PSC which probed the Easter Sunday terror attacks in 2019, and therefore President Dissanayake ought to do likewise. What it has left unsaid is that President Sirisena made a statement at the 20th meeting of that PSC, held at the Presidential Secretariat, on 20 September 2019. The PSC report has referred to the event as a ‘discussion’. Sirisena, who secured the executive presidency, promising to reduce the powers vested therein, should have refrained from undermining the legislature and visited the Parliament complex to testify before the PSC, as the Minister of Defence.

The least President Dissanayake can do to avoid the public perception that he, too, is undermining the legislature is to follow the precedent created by President Sirisena. Ideally, he ought to appear before the PSC in the parliamentary complex in keeping with his government’s much-touted commitment to upholding accountability and the separation of powers. After all, when the question of summoning President Sirisena before the PSC on the Easter Sunday attacks came up, the then JVP MP Dr. Nalinda Jayatissa, who was also a PSC member, defended the rights of Parliament. He declared that the PSC had the authority to summon anyone for questioning.

Now that the government members of the container PSC have gone out of their way to defend President Dissanayake, the question is whether they can be expected to allow an impartial investigation to be conducted and help uncover anything detrimental to the interests of the President and the ruling coalition.

By scuttling the Opposition PSC members’ effort to have President Dissanayake testify before the container PSC, and undermining the legislature in the process, the JVP-NPP government has unwittingly reminded the public of its unfulfilled election pledge to introduce a new Constitution, inter alia, “abolishing the executive presidency and appointing a president without executive powers by the parliament” (A Thriving Nation: A Beautiful Life, NPP Election Manifesto, p. 109).

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Editorial

Terrorism financing and terrorist assets

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Thursday 23rd April, 2026

Sri Lanka has reaffirmed its commitment to strengthening its national security and countering terrorism financing with renewed focus on Targeted Financial Sanctions (TFS), according to media reports quoting the Ministry of Defence. Sri Lanka’s compliance with the implementation of the TFS is in line with UN Security Council Resolutions, we are told. The irony of the aforementioned government announcement, which has come close on the heels of the seventh anniversary of the Easter Sunday terror attacks, may not have been lost on political observers.

The targeted financial sanctions, imposed on individuals and organisations suspected of involvement in terrorism or the financing of terrorism, include freezing assets, limiting access to financial systems and preventing designated persons or entities from conducting any form of financial activity within the country. Once a designation is published through a Gazette notification, a legally binding freezing order comes into effect. This results in the immediate freezing of bank accounts and restrictions on the use, transfer, sale, or leasing of movable and immovable assets, including property, vehicles, jewellery, and other valuables.

Eliminating the scourge of terrorism financing is a prerequisite for the success of any anti-terror campaign. Hence, the focus of all operations to defeat terrorism is on following the money trail, which is a forensic investigation technique used to trace financial transactions from their origin to the final destination, uncovering corruption, money laundering, or terrorism. In the case of the Easter Sunday terror strikes, it was not difficult to find out who had funded the National Thowheed Jamaath (NTJ) terror campaign. Sri Lankan investigators and the Federal Bureau of Investigation (FBI) of the US confirmed that the Ibrahim family, two of whose members carried out suicide bomb attacks, had financed the TNJ terror project.

The JVP-NPP government has drawn criticism from its political opponents for shielding the head of the Ibrahim family, Mohamed Ibrahim, who was a JVP National List nominee in 2015. Taking exception to the release of the assets seized from the residence of a suspect in the Easter Sunday terror strikes, the Opposition politicians have called for confiscating the wealth of the Ibrahim family and using it to compensate the victims of the Easter Sunday terror attacks. Interestingly, former President Maithripala Sirisena, ex-Defence Secretary Hemasiri Fernando, former IGP Pujith Jayasundara, former State Intelligence Service Chief Nilantha Jayawardena, and ex-State National Intelligence Service Chief Sisira Mendis have paid compensation to the Easter carnage victims, as per a Supreme Court order, for their failure to prevent the terror attacks.

The offence of financing terrorism is no less serious than the act of carrying out terrorist attacks. There is reason to believe that the issue of financing the Easter Sunday terror campaign has not been probed properly. The need for a fresh investigation into this vital aspect of the carnage cannot be overstated. However, the incumbent dispensation cannot be expected to open a can of worms by ordering a probe into this issue, and therefore a future government will have to get to the bottom of it.

It must also be found out what has become of the assets of the other terrorist organisations which raised colossal amounts of funds in this country. The LTTE and the JVP carried out numerous robberies, including bank heists, and obtained protection money from many people. They also robbed money and gold jewellery from the public. There have been election promises to trace the overseas assets of former rulers, but no serious effort has been made to fulfil these pledges. Illegal assets stashed away overseas must be brought back. Curiously, no political party has pledged to trace the missing assets of the former terrorist groups.

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Editorial

‘Cops and Robbers’: Role reversals

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Wednesday 22nd April, 2026

The Opposition is in overdrive, attacking the JVP-NPP government, left, right and centre, over the coal procurement scam, which has resulted in a huge increase in the cost of power generation and electricity tariffs, besides bleeding the Treasury. The government has said the additional cost of burning diesel to produce electricity to meet the Norochcholai generation shortfall will not be passed on to the public, but the funds it is spending on diesel liberally for power generation belong to the public, and not to the JVP or the NPP. It is the people who bear the losses and the cost overruns in power generation caused by the coal procurement scandal.

What we are witnessing is a textbook example of the link between unbridled power and corruption. Allegations of corruption against the incumbent government, which came to power promising to usher in good governance, remind us of a rhetorical question in Juvenal’s Satires: Who guards the guards? (Quis custodiet ipso custodes?) It is being argued in some quarters that self-policing is the way out, but what Juvenal has highlighted is the problem of ensuring accountability at the top as well as the need for effective checks and balances. Guards simply do not care to guard themselves. Acton’s dictum about the correlation between power and corruption also points to the fact that those who wield unchecked power tend to believe they are above the law, beyond criticism and always right. Hence, steamroller parliamentary majorities and the overconcentration of power in one or two political institutions are detrimental to the interests of a country that lacks robust democratic safeguards. This has been Sri Lanka’s experience.

A collective of Opposition parties has pledged to defeat the JVP-NPP government, probe the coal procurement scandal, etc., and throw the corrupt elements in the current dispensation behind bars. Some Opposition bigwigs appeared on television yesterday and made a pledge to that effect. The corrupt no doubt must be brought to justice, but pity a nation that has to rely on the corrupt to punish the corrupt, one may say with apologies to Brecht. Most of the self-righteous Opposition politicians on a crusade against corruption are tainted. They faced serious allegations of corruption while in power. If their corrupt deals and ill-gotten assets had been properly probed, they would have been in jail.

The Opposition politicians who are out for former Energy Minister Kumara Jayakody’s scalp for his involvement in the coal scam and hauling President Anura Kumara Dissanayake over the coals for shielding him, also have a history of defending the corrupt. SLPP politicians are at the forefront of the Opposition’s anti-corruption campaign. During the previous government, they unashamedly shielded the then Health Minister Keheliya Rambukwella, who was embroiled in a procurement racket, and even defeated a no-faith motion against him. They are demanding to know how some JVP full-timers have acquired valuable assets including houses. They themselves are well-heeled, full-time politicians, aren’t they? They have bigger houses than the JVP leaders. How have they acquired their wealth?

Some of the Opposition grandees campaigning against corruption and condemning the incumbent rulers for corrupt deals had the chutzpah to deny the Treasury bond scams (2015) and go so far as to defend the culprits during the UNP-led Yahapalana government. They went to the extent of trying to dilute the COPE (Committee on Public Enterprises) report on the bond scams by having a slew of footnotes incorporated into it. They also sullied their reputations by defending the Yahapalana administration accused of various questionable deals. Interestingly, from 2015 to 2019, they were in league with the JVP leaders who are currently in power. The JVP propped up the Yahapalana government despite the latter’s involvement in the Treasury bond scams and failure to prevent the Easter Sunday carnage. The SLPP, which came to power, vowing to have the UNP leaders jailed over the bond scam, joined forces with the latter in 2022 to retain its hold on power.

Thus, it may be seen that the ruling party politicians and their Opposition counterparts are driven by expediency and not principle; they are ready to do anything to safeguard self-interest despite their moral grandstanding and rhetoric.

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