International News 25 August 2025
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India Pushes Back as U.S. Tariff Dispute Escalates
India’s Foreign Minister Subrahmanyam Jaishankar said trade talks with Washington remain ongoing but stressed that New Delhi must defend key sectors such as agriculture and small producers. His remarks come after the U.S. imposed 25% tariffs on Indian goods—with another 25% set to begin August 27—citing India’s rising purchases of Russian oil. A planned U.S. trade delegation visit to New Delhi later this month was canceled, dimming hopes for tariff relief. Jaishankar criticized President Donald Trump’s public approach to foreign policy, calling it “unusual” and a departure from traditional diplomacy, while noting that other major buyers of Russian oil, like China and the EU, face no such penalties. Analysts warn the full 50% tariff could shave 0.8 percentage points off India’s growth this year and next, and potentially hurt its long-term appeal as a global manufacturing hub. Bilateral trade between the two economies exceeds $190 billion, but efforts at a deal faltered earlier this year when India refused to open its vast farm and dairy sectors. Jaishankar underscored that decisions would continue to be made in India’s “national interest,” dismissing U.S. claims as inconsistent and unfairly targeted.
Trump Launches Probe Into Furniture Imports, Signals Potential Tariffs
President Donald Trump announced a major investigation into U.S. furniture imports under Section 232, raising the prospect of new tariffs on a sector already facing price hikes from earlier trade measures. Trump said the review, expected to conclude within 50 days, will determine tariff levels on imported furniture, particularly from Vietnam and China, which together supply about 60% of U.S. imports worth $25.5 billion in 2024. The announcement rattled markets, with RH shares tumbling 7.5% in after-hours trading. Trump argued the move could revive domestic furniture manufacturing in states like North Carolina, South Carolina, and Michigan, though critics point to decades of industry decline, with employment dropping from 1.2 million in 1979 to just 340,000 today. Industry groups, including the American Home Furnishings Alliance (AHFA), have previously opposed Trump’s tariff agenda, warning that such policies neither align with national security nor restore U.S. manufacturing competitiveness. Consumer prices are already feeling the impact: furniture costs rose 0.7% in July 2025, outpacing headline inflation. The probe adds to Trump’s sweeping use of Section 232 across strategic sectors—ranging from semiconductors and critical minerals to wind turbines and heavy trucks. Meanwhile, the EU secured partial exemptions, capping tariffs at 15% for some goods while fully excluding aircraft, parts, and pharmaceutical raw materials. The escalating measures underscore Trump’s aggressive bid to tighten control over U.S. supply chains, even as opposition mounts at home and abroad.
U.S. Government Acquires 10% Stake in Intel Amid Struggles
President Donald Trump announced that the U.S. government will acquire a 9.9% stake in Intel for $8.9 billion, equivalent to $20.47 per share—below the stock’s last closing price of $24.80. The purchase, covering 433.3 million shares, will be funded through $5.7 billion in unspent CHIPS Act grants and $3.2 billion from the Secure Enclave program. Despite the move, Intel’s stock fell 1.2% in after-hours trading. The deal follows Trump’s pressure on CEO Lip-Bu Tan, whom he previously urged to resign over alleged ties to China, and highlights Washington’s growing intervention in strategic industries. The Intel stake is part of broader, unprecedented U.S. policies to safeguard technology and supply chains, including deals with Nvidia and plans for Pentagon ownership in rare earth mining firms. Analysts caution that while government and SoftBank’s recent $2 billion investment may provide short-term relief, Intel still faces deep challenges, from its unprofitable foundry business to weak product roadmaps. Trump framed the move as a win for national security and American jobs, but Intel’s turnaround under Tan—who took over in March after the company posted a $18.8 billion annual loss in 2024—remains uncertain.