President Trump's recent diplomatic and economic endeavors have yielded significant developments across the Gulf region and in trade relations with India, alongside a controversial domestic policy initiative concerning birthright citizenship.
Trump concluded a whirlwind tour of Saudi Arabia, Qatar, and the United Arab Emirates, securing deals totaling over $2 trillion in investments for the United States. Saudi Arabia committed to $600 billion in investments, including a $142 billion agreement for military equipment from US defense firms. Impressively, a forum witnessed deals worth over $300 billion, encompassing a $20 billion investment from DataVolt for AI data centers and $80 billion in technology investments from companies like Google and Oracle. Qatar has agreed to a $1.2 trillion economic exchange agreement with the U.S., $243.5 billion in commercial and defense deals, including purchasing $42 billion in American military hardware. The UAE is set to invest $1.4 trillion in the U.S.'s AI sector over the next decade and plans to spend $440 billion in the energy sector through 2035. Etihad Airways is also purchasing 28 Boeing aircraft. The UAE and the U.S. announced a partnership to construct a massive data center complex in Abu Dhabi to advance AI capabilities with a 5GW capacity. These agreements span various sectors, including AI, technology, semiconductors, energy cooperation, critical minerals, and manufacturing. The White House is touting these deals as a major political and economic victory.
In one of his first acts of his second term, President Trump signed an executive order seeking to end birthright citizenship, a policy that has been in place for over a century. This order aims to deny citizenship to children born in the U.S. to parents who are in the country illegally or on temporary visas. The move was swiftly met with legal challenges, and a federal judge in Washington state blocked the order from going into effect just three days after it was issued. Subsequently, two other federal judges issued nationwide injunctions. The Supreme Court heard oral arguments on the case, with the core question being whether lower court judges should be able to block presidential orders nationwide. The 6-3 conservative-dominated bench appeared divided on the issue. Many legal experts argue that the President cannot end birthright citizenship through an executive order, as it is guaranteed by the 14th Amendment to the Constitution. The 14th Amendment states that all persons born or naturalized in the United States and subject to its jurisdiction are citizens. The Trump administration argues that the phrase "subject to the jurisdiction thereof" excludes children of undocumented immigrants or those in the country temporarily. The outcome of this case could significantly transform U.S. policy on birthright citizenship and impact numerous individuals.
India and the U.S. are set to engage in trade talks, with India's Commerce and Industry Minister Piyush Goyal leading a delegation to Washington. These talks aim to finalize a bilateral trade agreement, potentially targeting $500 billion in bilateral trade by 2030. India's recent proposal to the World Trade Organization (WTO) to impose retaliatory tariffs on the U.S. in response to import duties on Indian steel and aluminum will be a key discussion point. The U.S. has requested tariff reductions on automobiles (including electric vehicles), wines, petrochemical products, dairy, and agricultural items. The U.S. has suspended 26% levies on Indian imports until July 9, while a 10% baseline tariff remains. Both countries aim to reach an interim agreement and achieve early mutual wins. President Trump has claimed that India has offered a trade deal with almost "no tariffs" on U.S. goods, a statement disputed by Indian officials. India is seeking duty cuts on textiles, gems, and leather. The U.S. is currently India's largest trading partner, with bilateral trade valued at $131.84 billion in 2024-25.