View Articles

Donald Trump’s Gulf tour has marked a defining chapter in his post-presidential brand of deal diplomacy, delivering a staggering $2 trillion in agreements that stretch across Saudi Arabia, the United Arab Emirates, and Qatar. This campaign stands in sharp contrast to the flagging results of his so-called trade mark tariff war, which—despite dominating headlines—yielded few tangible gains and inflicted considerable economic uncertainty globally. The deals secured in the Gulf region do not merely reflect economic exchanges; they signal a recalibration of regional alliances, global energy markets, and the enduring influence of Trump-style realpolitik in an increasingly multipolar world.

NEW YORK: It's the turn of the United States government to face a sovereign rating being downgraded by the Moody’s from its top AAA rating – Moody’s keeps downgrading the ratings of many developing countries including India. Moody’s Ratings cut the United States’ sovereign credit rating down a notch to Aa1 from the Aaa, the highest possible. however As1 would mean the economy is stable but not strong.

Fierce attacks by Baloch rebels have shaken the Pakistani Army, while it was predominantly occupied on the Indian front. Balochistan's provincial capital, Quetta, saw six attacks on Pakistani forces in just one day. Pakistan mobilised its Army units from Balochistan and redeployed on the Eastern border with India because of a recent military confrontation with India.

Renowned Nobel laureate economist Robert Solow was once asked if having a trade deficit is bad for any economy. He answered by saying he would always have a trade deficit with his barber and would always run a trade surplus with his students. Such is the nature of the game in the realm of economic transactions. Some countries are always better at producing certain goods and services, which they export, and they gain by importing those they are not as good at producing. Arguing that the US should impose equal reciprocal tariffs is fundamentally flawed. It contradicts the principle of comparative advantage - the very foundation of international trade since the beginning of modern civilization.

Portugal, a very important member of the European Union with a strong economy, is going for national elections next Sunday, May 18 to elect its 230 member Parliament. The 2025 elections will be the third one in the last three years showing the fragility of the coalition governments. No single political party is in a position to get majority in Parliament on its own.

Soon after organizing a 90 day truce last week end at Geneva through three day intensive talks between top officials of the United States and China, President Donald Trump is on a three nation tour covering Saudi Arabia, Qatar and UAE to pursue his deal making focusing on both trade and security. Simultaneously, the Chinese President Xi Jinping is wooing the Latin American countries to support him in his bid to restore the rule based international order on trade and tariffs.

The banning of the Awami League activities by the interim government of Bangladesh led by Dr. Muhammad Yunus last week has got wider implications for the pro-active political parties in the country in view of the coming national elections expected by early next year. Equally, the decision assumes significance for India which is now left with no friendly political party operating in its neighbouring country.

NEW YORK: In 1964, during the second summit of the Non-Aligned Movement in Cairo, Prime Minister of Sri Lanka (then Ceylon) Sirimavo Bandaranaike proposed that the Indian Ocean be turned into a “zone of peace” that was free of military bases and nuclear weapons. In the context of heightened militarization during the Cold War, this proposal was supported by Indian Prime Minister Jawaharlal Nehru.

For an import-dependent country on critical arms supplies, it may be risky to get involved in a long-drawn war. Ukraine, currently the world’s biggest arms importer, learnt the hard truth after Donald Trump became the US president. Recently, Ukraine had to part with its substantial mineral (rare earth) deposits to secure US arms supplies to fight Russia. Last year, Ukraine displaced India as the world’s largest arms importer. The US accounted for around 45 percent of Ukraine's total arms imports, while Germany and Poland provided 12 percent and 11 percent respectively. Without the US help, Ukraine would have possibly surrendered before Russia within months of the Russian attack.

NEW YORK: The escalating conflict between India and Pakistan is offering the world a glimpse of how Chinese military hardware is scaling up against western military hardware including from ground to air power as China has been the main supplier of military equipment to Pakistan whereas India outsources its military equipment from Russia and the West including USA, UK and France.