Tariffs, Travel, and Tech: Key Global Moves

7th August 2025

India is under pressure as U.S. President Donald Trump threatens to impose tariffs of up to 50% on Indian goods if a trade deal isn’t reached soon. Talks have stalled over disagreements on agriculture, dairy, and India’s continued oil trade with Russia. While India has paused Russian oil purchases under U.S. pressure, completely cutting ties could disrupt global markets. New Delhi is also strengthening ties with other partners like Russia and BRICS allies to counterbalance Washington’s stance. Indian officials remain hopeful a visiting U.S. trade team could revive negotiations, but Prime Minister Modi remains firm on protecting local livelihoods. The coming weeks will be critical in shaping India’s trade strategy. All this and more in today’s Read It and Eat !

Major Headlines 

• India and the U.S. Tariff Tension: What’s Next for New Delhi?

India is bracing for a potential trade blow as U.S. President Donald Trump’s proposed tariffs threaten to spike duties on Indian goods up to 50%, unless both sides can reach an agreement within weeks. Trade talks that once seemed promising have now stalled after five rounds of negotiations, largely due to disagreements over opening up India’s dairy and agriculture sectors and reducing Russian oil imports. While the increased tariffs could seriously disrupt trade, Indian officials remain hopeful that a visiting U.S. trade delegation this month might help revive discussions. Prime Minister Narendra Modi, meanwhile, has signaled his unwillingness to compromise on the livelihoods of Indian farmers, fishermen, and dairy workers, though some concessions like lower tariffs on select U.S. goods remain on the table.

One major point of friction is India’s continued oil trade with Russia. Although the country sourced only a small fraction of its oil from Russia before the Ukraine war, it now relies on it for over a third of its imports. As discounts have narrowed and U.S. pressure has mounted, Indian refiners have recently paused Russian oil purchases. Still, India insists it can secure enough oil from other major suppliers like Iraq, Saudi Arabia, and the UAE. That said, completely cutting off Russian imports could trigger broader price volatility in the global energy market, making this a tricky balancing act.

India may also consider aligning more closely with other developing nations that are facing similar pressure. Brazil, another key target of Trump’s trade offensive, is reportedly coordinating a response with India and China through the BRICS alliance. This could be an opportunity for India to rally broader international support while continuing to engage the

U.S. diplomatically. Strengthening ties with blocs like BRICS and the African Union may help India counterbalance Washington’s tariffs while pursuing long-term trade resilience.

At the same time, India is working to deepen strategic ties with partners like Russia. Ahead of a planned visit from President Vladimir Putin, India’s national security adviser and foreign minister have made trips to Moscow to reinforce the partnership. While U.S. relations remain a priority, New Delhi is clearly hedging its bets, trying to safeguard both its economic and geopolitical interests. The coming weeks will be crucial in determining whether India can find common ground with the U.S. or will need to pivot more decisively toward other global partners. Reuters 

• OpenAI’s GPT-5 Set to Debut Soon

OpenAI is gearing up for the release of GPT-5, the much-anticipated next step in the evolution of its AI technology that first wowed the world with ChatGPT back in 2022. While expectations are high, early feedback from testers suggests that the jump from GPT-4 to GPT-5 may not be as dramatic as the leap from GPT-3. Still, those who’ve had early access report improved performance in areas like coding and solving science and math problems. OpenAI, backed by Microsoft and now valued at around $300 billion, has stayed quiet on the details, declining to comment publicly or confirm a launch date.

One of the major hurdles in developing GPT-5 was scaling. With GPT-4, progress came from throwing more data and compute power into training. But this time around, OpenAI hit a data wall essentially running out of the high-quality, internet-scale datasets needed to train the next generation of large language models. According to former chief scientist Ilya Sutskever, compute power may be increasing, but the volume of usable training data simply isn’t keeping pace. On top of that, large-scale training runs are increasingly complex and vulnerable to hardware failures, which makes predicting performance a real challenge.

Despite those roadblocks, the AI community is eagerly watching and waiting. OpenAI’s Boris Power recently posted on X that he’s excited to see how GPT-5 will be received, and many in the industry believe its release is just around the corner. Investors and developers alike are hoping GPT-5 will enable AI to move beyond conversations and toward more autonomous task execution doing not just what we ask, but proactively solving complex problems across domains. That shift could unlock a new wave of AI-powered applications in business, science, and beyond.

OpenAI isn’t just relying on bigger models this time. It’s also leaning into a strategy called “test-time compute,” which means assigning more processing power to tough problems only when it’s needed, like solving equations or making decisions that require deeper reasoning.

CEO Sam Altman has said GPT-5 will combine this strategy with its core large language models to improve efficiency and output. He’s also acknowledged that OpenAI’s product offerings have gotten more complex, and GPT-5 could be a chance to simplify things and push the next wave of generative AI innovation forward. Bloomberg 

• Trump Floats 100% Tariff on Imported Chips — With Key Exemptions

Former U.S. President Donald Trump has announced plans to impose a 100% tariff on imported semiconductors  but with a significant caveat. Companies that manufacture chips in the United States, or have committed to doing so, would be exempt from the levy.

The proposed measure, which Trump says is aimed at revitalizing American manufacturing, coincided with Apple’s announcement of a new $100 billion investment into its U.S. operations. “For companies like Apple that are committed to building here, there will be no charge,” Trump said during a press briefing at the White House.

He also warned that companies shouldn’t try to skirt their U.S. manufacturing pledges. “If you say you’re going to build and you don’t, we’ll come back and charge you later, that's a guarantee,” he added. Still, his comments were not part of a formal policy announcement, leaving questions about the timeline and broader implications.

The proposed chip tariff comes just ahead of new U.S. trade levies ranging from 10% to 50%  set to take effect on a wide range of goods. A separate national security investigation into tech imports, including semiconductors, is expected to conclude by mid-August.

Trump’s remarks triggered swift international response. South Korea’s top trade envoy confirmed that major chipmakers like Samsung and SK Hynix would not be subject to the 100% tariff, thanks to trade arrangements between Seoul and Washington. But not all nations were reassured Dan Lachica, president of the Philippine semiconductor industry, called the plan “devastating” for his country’s exports. CNBC 

• IHG Sees Global Room Revenue Slow as U.S. Travel Demand Softens

InterContinental Hotels Group (IHG), the parent company of Holiday Inn, reported a dip in momentum during the second quarter, with global revenue per available room (RevPAR) showing signs of strain. The slowdown is largely attributed to softer travel demand in the U.S. IHG’s biggest market amid ongoing economic uncertainties. RevPAR in the U.S. fell 0.9% for the quarter, a noticeable shift from the 3.5% growth seen in the first quarter.

Rising geopolitical tensions and the lingering impact of trade policies, particularly those tied to former President Donald Trump's tariffs, have added pressure to the travel and hospitality sectors. Concerns around consumer spending and recession fears have also weighed heavily, especially in the U.S., where hotel brands like Marriott have already revised their outlook downward. Meanwhile, competitors like Hilton remain upbeat, recently raising their profit forecasts on signs of a summer rebound.

Despite the cooling in some key markets, IHG's leadership remains cautiously optimistic. CEO Elie Maalouf noted that while a few macroeconomic concerns still linger, many are beginning to ease. The company continues to expect that it will meet its full-year profit and earnings targets, signaling confidence in a more stable second half of the year.

Outside the U.S., challenges persist. In Greater China, RevPAR declined 3% as domestic demand remained sluggish. Globally, IHG posted a modest 0.3% growth in RevPAR for the quarter, down from 3.2% in the same period last year. Still, early indicators suggest that July bookings have started to pick up, hinting at a potential turnaround in consumer travel sentiment. CityAM 

Minor headlines 

• Google Pledges $1 Billion to Support AI Education at U.S. Universities. Bloomberg 

• DBS Shares Soar to All-Time High Following Strong Earnings and Dividend Hike. Financial Times 

• SoftBank Group Reports $2.87 Billion Net Profit in First Quarter. Bloomberg 

• TSMC Breaks Records as Taiwan Confirms Exemption from U.S. Tariffs. Yahoo.Finance 

• Deliveroo Raises Annual Profit Outlook to Upper End of Guidance Range. CityAM 

• IFX Payments' Acquisition of Argentex Falls Through. CityAM 

• Flights Resume at Birmingham Airport After Emergency Landing Disruption. CityAM 

• Maersk Raises Profit Forecast as Container Demand Holds Strong Despite Trade Concerns. Reuters