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    US is set to impose 50% tariffs on $20 billion worth of Canadian products
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August 22, 2026
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Import tariffs on Canadian products trigger potential retaliatory levies after bilateral negotiations fail to reach agreement.
Import tariffs on Canadian products are set to be imposed by the United States at a 50% rate after bilateral negotiations did not produce an agreement. The measures cover products including hockey sticks and tongue depressors and affect a limited share of Canada's annual exports to the United States. Canada has indicated possible retaliatory levies, intensifying the bilateral trade dispute.
August 21, 2026
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Rupee exchange-rate movement reflected geopolitical tensions, crude oil conditions and market intervention, while export payment rules expanded rupee invoicing.
Foreign Trade Policy amendments facilitate export invoicing and receipt of payments in Indian rupees. For exports to countries outside the Asian Clearing Union, export contracts and invoices may be denominated in Indian rupees or any foreign currency. The earlier general requirement that export earnings be received in a freely convertible currency is thereby eased, while applicable rules continue to vary according to destination.
August 21, 2026
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Non-controlling land-bordering country ownership permits eligible foreign investment through the automatic route, subject to sectoral conditions and reporting.
Foreign direct investment may use the automatic route where non-controlling beneficial ownership from a land-bordering country in the investor entity does not exceed 10%, subject to sectoral caps, entry routes and other applicable conditions. The beneficial ownership test applies at the investor-entity level. Eligible investors need not obtain separate prior Government approval after reporting relevant information to the Government. The framework replaces the earlier approval requirement applicable even to minimal beneficial ownership from land-bordering countries.
August 21, 2026
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Climate-resilient urban water security modernises Chennai's supply and sanitation systems through ring-main infrastructure, digital monitoring, and safer sewer operations.
Chennai Climate-Resilient Water Security and Sewerage Project modernises and expands water supply and sanitation infrastructure through a loan arrangement between the Government of India and the Asian Development Bank. Measures include new pipelines, upgraded pumping stations, performance-based utility operations, and a comprehensive ring-main system to improve water-pressure balance, distribution efficiency, reliability and climate resilience. Digital monitoring and advanced blockage-detection technology are intended to improve operational decisions, customer responsiveness and worker safety while eliminating hazardous manual sewer inspections.
August 21, 2026
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Capacity-based taxation targets undeclared pouch-packing machinery used for clandestine pan masala and tobacco production and untaxed clearances.
Capacity-based taxation of pan masala and specified tobacco products is determined by the number, type and capacity of installed pouch-packing machines. Searches at interconnected manufacturing and trading premises detected unregistered operations using undeclared machinery for clandestine manufacture and clearance of pan masala, scented jarda and gutkha without payment of GST, HSNS cess and central excise duty. Finished goods, raw materials, packing materials and machinery were seized. The manufacturing firm's proprietor was prima facie identified as managing the operation and was arrested under the applicable cess and central excise laws.
August 21, 2026
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Technology risk oversight requires Urban Co-operative Banks to retain accountability while building shared and role-specific capabilities.
Urban Co-operative Banks must strengthen digital and risk-management capabilities as technology dependence exposes them to cyber threats, fraud, service-provider failures and common-platform vulnerabilities. Outsourcing critical systems does not transfer the bank's responsibility for oversight, safeguards and continuity. Boards and senior management must retain sufficient knowledge to supervise external providers effectively. Mission SAKSHAM supports role-specific, continuous capability building through physical and online learning, while collective infrastructure and shared expertise can supplement individual institutional capacity.
August 21, 2026
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Foreign exchange market modernisation prioritises delegated decisions, customer transparency, digital workflows, local-currency settlement and accountable risk management.
Foreign exchange market modernisation advances a facilitative, principles-based framework based on delegated decision-making by Authorised Dealers, risk-based reporting, and customer-centric service standards. Authorised Dealers must apply clear internal policies, avoid unnecessary documentation, disclose charges, timelines and grievance mechanisms, and ensure consistent treatment of comparable transactions. Local-currency settlement requires viable trade corridors, competitive hedging, correspondent relationships and robust AML/CFT controls. Digital workflows, electronic trading and reporting infrastructure should improve transparency and resilience, while automated tools remain subject to explainability, review and data-protection safeguards.
August 21, 2026
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Sugar price containment measures restrict stockholding, permit duty-free imports, and strengthen inventory verification to deter hoarding.
Sugar price containment measures include stock limits for dealers, consumption-based inventory restrictions for bulk consumers, duty-free raw sugar imports, and physical verification of mill stocks to prevent hoarding and artificial scarcity. Price increases are attributed to lower domestic output, festive demand, crop damage, tighter global supplies, and speculation rather than sugar diversion for ethanol. Earlier crushing is advised to improve seasonal availability, while the ethanol programme supports management of sugar surpluses, mill liquidity, and timely sugarcane payments.
August 21, 2026
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Cross-border insolvency enforcement constrains asset recovery as Evergrande liquidation, founder asset confiscation, and audit-related claims continue.
Evergrande's insolvency process involves liquidation proceedings for its mainland property-development unit and its Hong Kong-listed holding company. Cross-border recovery is constrained by separate Hong Kong and mainland China legal systems, particularly because most operational assets are located in mainland China. Liquidators are pursuing asset-tracing and recovery measures against the founder and connected persons, as well as claims concerning pre-collapse audits. Investigations identified revenue overstatement through manipulated financial data. Creditor recoveries are expected to be limited due to substantial liabilities and constraints on asset realisation.
August 21, 2026
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Foreign exchange reserves rose through higher currency assets and gold holdings amid measures to attract external forex inflows.
India's foreign exchange reserves increased during the reporting week, led by higher foreign currency assets and gold reserves. Foreign currency assets include the dollar-value effects of movements in non-US currencies held as reserves. Special drawing rights declined marginally, while the reserve position with the International Monetary Fund increased marginally. Concessional swap arrangements formed part of measures to attract foreign-exchange inflows, while earlier reserve movements were linked to rupee pressure and dollar-sale intervention in the foreign-exchange market.
August 21, 2026
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Incremental tariff recovery aligns airport user charges with completed infrastructure, preventing passengers from funding non-operational capital projects prematurely.
User development fees and airport tariffs for Bengaluru International Airport have been revised for the April 2026 to March 2031 control period. The incremental Average Revenue Requirement framework excludes costs of identified high-value capital projects from tariffs until the relevant assets are completed, commissioned and available for users. Incremental tariff recovery may begin only upon operational availability, aligning charges with infrastructure use, reducing premature recovery risk for passengers and airlines, and encouraging timely completion of major capital works.
August 21, 2026
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Customer experience analytics enables banks to convert real-time feedback into operational improvements across high-value customer journeys.
Customer experience analytics is used in banking to transform customer data and real-time feedback into operational improvements across key customer journeys. Operational teams retain responsibility for strategy and execution, supported by in-house analytics and technology platforms for multi-channel journey mapping, journey analytics and prioritisation of high-value customer segments. AI-driven customer experience management tools capture customer signals, analyse journey performance and operationalise actionable insights across teams.
August 21, 2026
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Predicate-offence dependency limits retrospective addition of old FIRs to preserve money-laundering proceedings after the original scheduled offence is closed.
Predicate-offence dependency under the Prevention of Money Laundering Act requires an ECIR to rest on a subsisting scheduled offence. Closure of the FIR forming its basis through an accepted cancellation report prevents continuation of money-laundering proceedings unless that closure is overturned. A previously registered FIR cannot be belatedly added merely to preserve an existing ECIR and coercive powers. Where statutory requirements are met, an independently registered ECIR may be required. Expansion of an ECIR cannot rest solely on tenuous factual links between successive disputes.
August 21, 2026
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Indian rupee export invoicing rules now permit overseas contracts and invoices in rupees or foreign currency for eligible destinations.
Foreign Trade Policy provisions were amended to facilitate invoicing of overseas exports and receipt of export payments in Indian rupees. For exports to countries outside the Asian Clearing Union, export contracts and invoices may be denominated in Indian rupees or any foreign currency, replacing the earlier general requirement that export earnings be received in a freely convertible currency. The applicable requirements vary according to the destination country.
August 21, 2026
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Dealer inventory financing supports working-capital flexibility, vehicle inventory management and electric-vehicle network expansion for authorised dealers.
Dealer inventory financing is to be provided by Federal Bank to VinFast India's authorised dealer network under a memorandum of understanding. The tailored financing is intended to improve dealers' working-capital flexibility, support maintenance of vehicle inventory, strengthen operational capability, and enable timely response to demand as the electric-vehicle distribution network expands.
August 21, 2026
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Sugar supply pressures drive festive-season price increases as imports, stockholding limits and ethanol diversion shape market conditions.
Sugar prices in Bengal have risen sharply ahead of the festive season, with higher prices also affecting jaggery and other sugar-derived products. Supply constraints, mill stock releases, lower production in Brazil, ethanol diversion and possible hoarding have been identified as contributing factors. Raw-sugar imports have been permitted to augment availability, while stockholding restrictions limit inventories of specified bulk consumers. Lower projected closing stocks and possible future production effects from El Nino may sustain pressure on sugar availability and increase costs for sweetmeat producers.
August 21, 2026
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Foreign currency inflows and FCNR(B) deposits supported rupee sentiment, while oil prices and geopolitical risks constrained currency strength.
The rupee strengthened marginally against the US dollar as the dollar index softened, but elevated crude oil prices, geopolitical uncertainty, reduced foreign participation and net foreign equity outflows constrained currency sentiment. RBI measures to attract foreign currency inflows, including FCNR(B) deposits, were expected to generate substantial inflows, although these had not produced meaningful rupee strength. Energy-market disruption and restrictions on fuel exports through the Strait of Hormuz added to external-sector pressures.
August 21, 2026
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Sovereign security production priorities emphasise compliance, modernisation, employee innovation and operational excellence across currency, passport and coinage manufacturing.
SPMCIL performs a sovereign production mandate covering secure currency, coinage, passports and other products of national importance through its mints, currency presses, security presses and paper mill. Modernisation, compliance, transparency, efficiency, productivity, quality and corporate governance support the fulfilment of sovereign requirements. Individual employees and units were recognised for performance in productivity, environment and safety, energy conservation, knowledge and development, vigilance, and official-language implementation.
August 20, 2026
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Customs enforcement against suspected gold smuggling leads to baggage seizure and apprehension of the alleged intended receiver.
Customs officers intercepted an arriving passenger at the green channel on intelligence inputs and examined baggage after X-ray screening indicated suspicious images. The examination recovered two oval capsules containing gold paste concealed in the baggage. Interrogation indicated that an alleged receiver was waiting outside the airport to collect the suspected smuggled gold. Customs officers apprehended the alleged receiver, and further investigation remains underway.
August 20, 2026
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Provincial alcohol sales restrictions remain subject to economic impact assessment under proposed bilateral trade agreement negotiations.
Provincial control over alcohol distribution remains distinct from federal trade-making authority. Quebec retains authority over whether United States alcohol is offered through its government-controlled liquor distribution system, despite lacking a veto over a bilateral trade agreement. Federal requests to restore United States alcohol to retail shelves cannot compel provincial action. Proposed trade commitments also concern restrictions on United States agricultural products and Canada's dairy import regime, which applies lower tariffs within designated import volumes and higher duties beyond those volumes.

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Customs & Trade

Japan's PM Ishiba faces uphill battle in upper house election amid rising prices and US tariffs

July 19, 2025

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Tokyo, Jul 19 (AP) Japan's Prime Minister Shigeru Ishiba faces an increasingly uphill battle in Sunday's upper house election, and a loss could worsen political instability at a time of daunting challenges, such as rising prices and high US tariffs.

A poor performance would not immediately trigger a change of government but it would deepen uncertainty over his fate and Japan's future path.

The ruling Liberal Democratic Party suffered a humiliating loss in a lower house election in October as its usual supporters registered their unhappiness over past corruption scandals and high prices. Ishiba is struggling to regain voter confidence.

His minority government has since been forced into making concessions to the opposition to get legislation through the Diet, or parliament. That has hindered its ability to quickly deliver effective measures to curb rising prices and win wage increases. On top of shortages and soaring prices for rice, a traditional staple, Ishiba has been stymied by President Donald Trump's tariff demands.

Frustrated voters are rapidly turning to emerging populist parties, including one that is promoting anti-foreign policies and backpedaling on gender equality and diversity.

Here's a look at Sunday's election: Instability, win or lose Ishiba has set a low bar for the vote — a simple majority. Half of the 248 seats for six-year terms in the upper house are being decided, and the LDP and its junior coalition partner Komeito would need to win a combined 50. Added to the 75 coalition-held seats that are not being contested in this election, it would be a big retreat from the 141 seats the coalition held before the election.

If the ruling coalition fails to secure a majority, “there will be a move within the LDP to dump Ishiba,” said Yu Uchiyama, a University of Tokyo professor of political science. “It makes a leadership very unstable.” Under any successor, the ruling coalition would be a minority in both houses, he said.

If Ishiba's coalition secures a majority and he stays on, his leadership will remain weak, with little hope of improved support ratings, Uchiyama said. “Either way, it is essential for the minority government to seek opposition parties' cooperation to achieve any policy.” Trump, rice and price woes Measures to mitigate soaring prices, lagging incomes and burdensome social security payments are the top focus of frustrated, cash-strapped voters.

Rice prices have doubled since last year due to supply shortages, overly complex distribution systems and other reasons related to Japan's farming, causing panic buying as Ishiba has struggled to resolve the crisis.

Trump has added to that pressure, complaining about a lack of progress in trade negotiations, blaming a lack of sales of US autos and American-grown rice to Japan despite a shortfall in domestic stocks of the grain. A 25 per cent tariff due to take effect Aug. 1 has been another blow for Ishiba.

Ishiba has resisted any compromise before the election, but the prospect for a breakthrough after the election is just as unclear because the minority government would have difficulty forming a consensus with the opposition.

The rice issue has cost Ishiba one farm minister. Rice prices remain high even after the farm minister's replacement, Shinjiro Koizumi, moved quickly and boldly to address the problem by ordering the emergency release of stored rice from reserves, helping to refill grocery store shelves in time for the election.

Koizumi, son of popular former Prime Minister Junichiro Koizumi, is a potential challenger to Ishiba.

An emerging populist right and xenophobia Stricter measures targeting foreign residents and visitors have suddenly emerged as a key issue.

The Sanseito party stands out with the toughest anti-foreigner stance with its “Japanese First” platform that proposes a new agency to centralise policies related to foreigners. It wants stricter screening for allowing Japanese citizenship and to exclude non-Japanese from welfare benefits. The party's populist platform is also anti-vaccine, anti-globalism and favors traditional gender roles.

Its stance has encouraged the spread of xenophobic rhetoric in the election campaign and on social media, critics say. A typical claim is that a rapid increase in foreign workers has hurt Japanese workers' wages and that foreigners use a large share of welfare benefits and have made Japanese society unsafe.

“Foreigners are used as targets to vent their discontent and unease,” Uchiyama said, comparing the scapegoating to that in Europe and the United States under Trump.

Experts say most of the rhetoric is disinformation aimed at frustrations among Japanese struggling to get by. Government statistics show foreign residents account for about 3 per cent of both Japan's total population and of welfare benefit recipients.

The Liberal Democrats, under a slogan “zero illegal immigrants,” have pledged to crack down on growing illegal employment of foreigners and against allowing them to default on social insurance payments or medical bills. The party also set up a task force to promote an orderly society, a move aimed at enforcing stricter measures on foreigners to address growing public unease. The rising conservative Democratic Party for the People, or the DPP, also is calling to restrict foreign ownership of Japanese real estate.

The move triggered protests by human rights activists and alarmed foreign residents.

Given that its population is rapidly aging and shrinking, Japan needs foreign workers. It should discuss immigration policy more strategically, Takahide Kiuchi, an executive economist at Nomura Research Institute, wrote in a recent analysis.

Still, the opposition is fractured Conservative to centrist opposition groups, including the main opposition Constitutional Democratic Party of Japan, or CDPJ, the DPP, and Sanseito have gained significant ground at the Liberal Democrats' expense.

They are believed to be raking in conservative supporters of the ruling party who are disappointed by Ishiba's leadership and flip-flops on policies. Ishiba is caught between his party's ultraconservatives and mainstream opposition leaders.

Still, the eight main opposition groups are too fractured to forge a common platform as a united front and gain voter support as a viable alternative.

When Ishiba lost big in October, there was speculation about a trilateral coalition government with the Komeito and the DPP or another conservative group, the Japan Innovation Party. But they've since cooperated only on certain legislation. If the ruling coalition loses its upper house majority, that could spark a regrouping among coalitions.

Yoshihiko Noda, a former prime minister and head of the opposition CDPJ, said the loss of ruling coalition majorities in both houses of parliament would enable opposition parties to push policies blocked by the LDP. Those include cuts in the consumption tax, recognition of same-sex marriages, and a law allowing married couples the option of each keeping their own names. (AP) SKY SKY

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