14th may 2025 Current Affairs
US-China 90-Day Tariff Truce Syllabus:IR The United States and China have agreed to a 90-day pause in their ongoing trade conflict following two days of talks in Geneva. Both countries will suspend all tariff hikes and non-tariff barriers imposed since April 2, with a mutual commitment to resolving trade disputes. Background: How the Trade War Escalated Initial Tariffs: The U.S. began imposing tariffs in February, citing concerns over fentanyl exports from China. April 2 – “Liberation Day”: Marked a major escalation, with the U.S. slapping an additional 34% tariff on Chinese goods. China’s Response: Beijing hit back with retaliatory tariffs and non-tariff barriers, including export restrictions on rare earths and regulatory crackdowns on U.S. firms. By April 10: S. tariffs on Chinese goods: 145% China’s tariffs on U.S. goods: 125% A $100 Chinese item effectively cost $245 in the U.S. Why Tariffs Were Imposed Trade Deficit: The U.S. cited a $1.2 trillion trade deficit in goods, arguing it reflected unfair trade. Unfair Competition: Claims that foreign nations subsidize exports and shield local firms, putting U.S. businesses at a disadvantage. Policy Shift: After failed diplomatic efforts, the U.S. adopted high tariffs as a defense mechanism for domestic industries. Post-Truce Trade Landscape Tariff Reduction: Both countries lowered base tariffs to 10% on imports. S. Exception: A 20% additional tariff remains on Chinese goods tied to fentanyl concerns, totaling a 30% effective tariff. China’s Action: Beijing has lifted non-tariff measures, including export controls and corporate investigations. Why the Truce Happened Consumer Impact: Tariffs raised prices, hurting consumers more than helping producers. Economic Strain: Retailers like Walmart warned of supply shortages and rising costs. Recession Risk: The U.S. economy contracted in Q1 2025, and economists warned of a looming recession and possible stagflation. Conclusion The agreement marks a temporary ceasefire, not a resolution. With deep mistrust and complex negotiations ahead, the truce offers only a window for diplomacy — not a guaranteed peace. With reference to the US-China Tariff Truce of 2025, consider the following statements: The 90-day truce completely eliminated all tariffs and non-tariff barriers between the two nations. One of the triggers for the initial US tariff imposition was the illicit trade in synthetic opioids. China’s response to US tariffs included both retaliatory tariffs and export controls on critical minerals. Which of the statements given above is/are correct?A. 1 and 2 onlyB. 2 and 3 onlyC. 1 and 3 onlyD. 1, 2, and 3 Answer:BExplanation: Statement 1 is incorrect: Tariffs were reduced, not eliminated. Statement 2 is correct: Fentanyl trade was a key reason. Statement 3 is correct: China used both tariffs and non-tariff barriers like export restrictions. India’s Strategic Doctrine: PM Aligns Anti-Terror Policy with Global Framework Syllabus:Governance Context: In his first national address following Operation Sindoor — India’s most decisive military engagement since the Kargil War — Prime Minister Narendra Modi unveiled a transformative anti-terror doctrine, redefining India’s approach to cross-border terrorism and regional security. Core Tenets of the New Strategic Doctrine Response on India’s Terms:India reserves the sovereign right to determine the timing, nature, and intensity of its response to terrorism. Deterrence Beyond Nuclear Threats:India’s actions will not be constrained by adversarial nuclear posturing — signaling the end of “nuclear blackmail” as a deterrent. Unified Targeting Approach:No distinction will be made between terrorists, their leadership, or the states providing them support. All will be held equally accountable. Doctrinal Evolution Post-Uri and Balakot This doctrine marks a continuity and intensification of India’s response model that began with: Uri Surgical Strikes (2016) Balakot Airstrikes (2019) Operation Sindoor, conducted after the Pahalgam terror attack, is positioned as the new baseline in India’s counter-terrorism strategy, raising the threshold for future military actions and reinforcing India’s offensive preparedness. India’s Role in the Global War on Terror PM Modi positioned India as a responsible global actor in the fight against terrorism, likening strikes on Jaish-e-Mohammed and Lashkar-e-Taiba to international efforts post-9/11.He called for global unity and reiterated that the “era of terrorism” must end, adapting his earlier message: “This is not the era of war” to “This is also not the era of terrorism.” Strategic Military Capabilities Displayed India showcased its growing technological edge, including: Precision missile strikes Destruction of drones and key enemy airbases Use of Made-in-India weaponry in 21st-century warfare The operation highlighted India’s capacity for deep-strike operations and its readiness for high-stakes, modern conflict scenarios. Strategic Pause: A Calculated Decision While Pakistan sought diplomatic de-escalation after suffering significant losses, India chose to pause operations only after key objectives were achieved.This was described not as withdrawal, but as conditional suspension, with future actions contingent on Pakistan’s conduct. Reaffirming Strategic Red Lines India reiterated its uncompromising stance: No engagement with Pakistan unless talks are centered on terrorism or Pakistan-occupied Kashmir (PoK). No resumption of trade, water-sharing, or diplomatic normalcy under the shadow of terror. Philosophical Underpinning: Peace Through Strength On Buddha Purnima, PM Modi evoked Lord Buddha’s message, emphasizing that peace is safeguarded by strength. A militarily strong India is essential to achieving the vision of Viksit Bharat (Developed India). Conclusion: A Paradigm Shift in National Security Posture India’s updated strategic doctrine signals a bold, assertive, and independent military posture, grounded in zero tolerance for terrorism and supported by advanced capabilities.Operation Sindoor is not just a tactical victory—it is the cornerstone of a new doctrine for India’s national security and global leadership in counter-terrorism. With reference to India’s new anti-terror doctrine post-Operation Sindoor, consider the following statements: It marks the first time India has formally rejected nuclear deterrence in its counter-terror strategy. The doctrine makes a distinction between non-state and state-sponsored terrorism. Operation Sindoor represents a shift from defensive retaliation to pre-emptive, technology-enabled strike capability. Which of the above statements is/are correct? A. 1 and 3 onlyB. 2 onlyC. 1 and 2 onlyD. 1, 2 and 3 Answer: A Explanation: Statement 1 is correct: The doctrine explicitly states that India will not be deterred by nuclear threats, rejecting