The U.S. Supreme Court recently struck down President Trump’s 'reciprocal tariffs' imposed under the International Emergency Economic Powers Act, citing an overstep of authority. In response, the Trump administration announced a temporary 150-day, 15% baseline tariff on all imports using Section 122 of the Trade Act of 1974. India's Commerce Ministry is studying the implications, especially as aluminium and steel exports to the U.S. have already seen a 66% decline due to previous Section 232 duties. The ruling potentially renders recent trade deals one-sided, prompting calls for India to re-examine its interim trade pact.
The U.S. Supreme Court ruled that reciprocal tariffs exceeded presidential authority, leading to a new 15% baseline tariff under Section 122 of the Trade Act of 1974.
India's steel and aluminium exports are significantly impacted, as they constitute the fourth-largest export group to the U.S.
The suspension of 'de minimis' exemptions for low-value shipments further affects small Indian e-commerce exporters.
Exam Points
Section 122 of the U.S. Trade Act of 1974 allows surcharges for fundamental international payment problems.
Section 232 of the Trade Expansion Act of 1962 deals with tariffs based on national security grounds.
Indian aluminium and steel exports to the U.S. fell by nearly 66% in December 2025.
Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva met in New Delhi to strengthen bilateral ties. The two nations signed significant agreements focusing on rare earth and critical minerals, and steel mining, aimed at diversifying supply chains away from Chinese dominance. They set an ambitious bilateral trade target of $30 billion annually by 2030, up from the current $12-15 billion. The leaders also discussed the impact of U.S. tariff shifts and emphasized their roles as leading democracies of the Global South, advocating for multilateralism and a digital partnership for the future.
India and Brazil signed a pioneering agreement focusing on renewable energy and critical minerals to diversify global supply chains.
The bilateral trade target has been set at $30 billion per year by 2030, doubling current estimates.
Both nations emphasized their identity as the two biggest democracies of the Global South and committed to defending multilateralism.
Exam Points
Bilateral trade target is $30 billion by 2030.
Current bilateral trade is estimated between $12-15 billion.
The meeting included discussions on the Global Biofuel Alliance announced in 2023.
The AI Impact Summit concluded in New Delhi with 85 countries and three international organizations signing the 'New Delhi Declaration.' Guided by the principle of 'Sarvajan Hitaya, Sarvajan Sukhaya' (Welfare for all, Happiness for all), the declaration establishes a voluntary, non-binding framework to ensure the benefits of AI are shared equitably across humanity. Key outcomes include the launch of the 'Global AI Impact Commons,' a repository for AI tools and best practices, and the 'Charter for the Democratic Diffusion of AI.' The summit highlighted the need for AI literacy, workforce development, and secure, trustworthy AI ecosystems.
The New Delhi Declaration promotes a voluntary framework for equitable access to AI resources and resilient AI ecosystems.
The 'Global AI Impact Commons' will serve as a database for countries to draw inspiration for AI implementation and best practices.
India launched its first domestically trained multi-billion parameter Large Language Model (LLM) by Sarvam AI during the event.
Exam Points
85 countries and 3 international organizations are signatories to the New Delhi Declaration.
The summit featured the launch of the 'IndiaAI Mission' computing resources.
The declaration includes a 'Charter for the Democratic Diffusion of AI' as a voluntary framework.
Union Health Minister J.P. Nadda launched the indigenously manufactured Tetanus and adult Diphtheria (Td) vaccine at the Central Research Institute (CRI) in Kasauli. This marks a significant milestone as CRI becomes the first government institute to manufacture vaccines under Good Manufacturing Practices (GMP) standards. The vaccine has been introduced for supply under the Universal Immunization Programme (UIP), with an initial supply of 55 lakh doses. This move strengthens India's public health infrastructure and reinforces its status as the 'pharmacy of the world,' following the successful development of indigenous COVID-19 vaccines.
The Td vaccine is indigenously manufactured by the Central Research Institute (CRI), Kasauli, strengthening national health security.
CRI is the first government institute to achieve Good Manufacturing Practices (GMP) standards for vaccine production.
The vaccine will be integrated into the Universal Immunization Programme (UIP), which is the world's largest immunization program.
Exam Points
Central Research Institute (CRI) is located in Kasauli, Himachal Pradesh.
The Universal Immunization Programme (UIP) currently protects against 12 vaccine-preventable diseases.
Initial supply target for the Td vaccine is 55 lakh doses through UIP.
The National Green Tribunal (NGT) has upheld the environmental clearance for the ₹80,000-90,000 crore 'Holistic Development of Great Nicobar Island' project. The project includes an International Container Transshipment Terminal, a greenfield airport, a power plant, and a township. While environmentalists raised concerns about the impact on leatherback sea turtles and coral colonies, the NGT adopted a 'balanced approach,' weighing environmental safeguards against national security. The tribunal ruled that the project is strategically vital due to its proximity to the Malacca Strait and will not displace the Shompen and Nicobari tribes.
The NGT cleared the Great Nicobar project, emphasizing its strategic importance near the Malacca Strait for maritime security.
The project involves the translocation of approximately 16,150 coral colonies to suitable recipient sites to mitigate environmental impact.
The tribunal stated that the habitat rights of the Shompen and Nicobari tribes would be protected under the Forest Rights Act.
Exam Points
Project cost is estimated at ₹80,000-90,000 crore.
Great Nicobar is located 40 km from the Malacca Strait, a critical international shipping lane.
The project is implemented by the Andaman and Nicobar Islands Integrated Development Corporation Limited (ANIIDCO).
U.S. President Donald Trump has expressed strong opposition to the U.K.'s draft legislation intended to transfer the sovereignty of the Chagos Islands to Mauritius. Located in the central Indian Ocean, the archipelago includes the strategic U.S.-U.K. military base at Diego Garcia. While the deal includes a 99-year lease for the base, Trump labeled the transfer an 'act of great stupidity,' citing potential security risks and the influence of China in Mauritius. The deal follows a 2019 ICJ advisory ruling stating that the decolonization of Mauritius was incomplete without the Chagos Islands.
The U.K. plans to transfer sovereignty of the Chagos Archipelago to Mauritius while retaining the Diego Garcia military base.
The Chagos Islands are strategically located in the central Indian Ocean, approximately 1,600 km from India.
President Trump opposes the deal, fearing it compromises the security of the Diego Garcia base and increases Chinese influence.
Exam Points
Diego Garcia base is leased for 99 years under the proposed deal.
The Chagos Archipelago consists of 60 islands.
The deal includes a £40 million trust fund to support displaced Chagossians.
Admiral Stephen T. Koehler, Commander of the U.S. Pacific Fleet, emphasized the critical role of the Indian and U.S. Navies in safeguarding sovereignty and ensuring stability in the Indian Ocean Region (IOR) and the Indo-Pacific. Speaking at the International Fleet Review (IFR) and MILAN-2026 in Visakhapatnam, he highlighted the growing operational cooperation through joint exercises like Malabar, MILAN, and RIMPAC. Both navies operate similar platforms like P-8I aircraft and MH-60R helicopters, enhancing interoperability. The Admiral noted that India's naval capabilities are central to maintaining freedom of navigation in these vital trade routes.
The U.S. and Indian Navies are increasing cooperation to maintain a free and open Indo-Pacific against various maritime challenges.
Joint exercises such as Malabar, MILAN, and RIMPAC are key to enhancing naval interoperability and combined strength.
Both navies utilize common platforms, including P-8I maritime patrol aircraft and MH-60R Seahawk helicopters for anti-submarine warfare.
Exam Points
Admiral Stephen T. Koehler is the Commander of the U.S. Pacific Fleet.
MILAN-2026 and the International Fleet Review (IFR) were held in Visakhapatnam.
Read more
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.