With Friends Like These: Trump's Tariff Strike on India
"Is man's own ruin not enough a storm to bear?
Why must the heavens rage where you declare your care?"
US President Donald Trump has imposed a 25% tariff on India, despite referring to the country as a friend. He has criticized India for purchasing oil, energy, and weapons from Russia, and announced penalties for these actions. The United States seems uncertain about its direction but is eager to set a speed record once it decides. Trump's ambition to achieve greatness drives him to make decisions that have caused global unrest. His primary goal with the tariff threats is to boost American industries and reduce the trade deficit. Frustrated by stalled trade negotiations with India, Trump believes the 25% tariff will compel India to comply. He is also concerned about the BRICS countries, fearing their efforts to find alternatives to the US dollar could weaken it. India plays a significant role in BRICS, and Trump appears apprehensive about India following China and Russia. Historically, US-India relations have been marked by an anti-India stance. From Nixon to Bush and Clinton, the US has consistently supported Pakistan financially, allowing it to foster terrorism. It is well-known that American funds have helped terrorists in Pakistan grow and train. When Pakistan faced starvation and economic collapse, it was America that kept it afloat.
On 16 May 1974, during the regime of then Prime Minister Smt. Indira Gandhi, nuclear tests were conducted in Pokhran, which infuriated America. Then in 1978, US President Jimmy Carter stopped exporting nuclear aid to India and imposed many economic sanctions. In 1998, during the regime of Atal Bihari Vajpayee, Pokhran test-2 was conducted, even then strict economic sanctions were imposed on India. These sanctions remained in place until 2008, when US President George W. Bush and then Prime Minister Manmohan Singh announced their intention to enter into a nuclear agreement for the first time. Russia has always helped India during war and peace time. India's friendship with Russia has always been a thorn in the eyes of America. Russia played an important role in strengthening the infrastructure in India and also left no stone unturned in making India's army powerful.
India has never been deterred by US sanctions before and neither will it be now. Trump wants India to buy military equipment from America instead of Russia and India should also reduce its dependence on Russia for oil. India-Russia relations are so strong because during the wars when America stood with Pakistan, it was Russia who provided India with the protection of defense treaty. Russia not only gives us military equipment, but also its technology. Whereas America does not give us technology. After the Russia-Ukraine war, America put pressure on India not to buy S-400 defense shield and oil from Russia, but the Narendra Modi government at the Center continued trade with Russia, protecting Indian interests by ignoring the American pressure. This 'tariff strike' will have a direct impact on the Indian economy, especially major export sectors like smart phones, pharma, textiles, gems and jewelry and auto parts. There is a possibility of increased pressure on the rupee and instability in the stock market. However, the Indian government has said that it will take all necessary steps to protect national interests and is still hoping for a balanced trade agreement.
Numerous questions have arisen following the US's imposition of a 25 percent tariff on India. It is crucial to observe how India addresses this challenge and whether it influences broader bilateral relations. Indian goods will become more costly in the US. The tax burden on companies offering IT services in the US will rise, and the stock market is experiencing a downturn. Economic experts suggest that India must brace for potential negative effects on the global economy to sustain trade balance. Some economic analysts believe the impact of the US tariff will be noticeable initially, but India is currently a significant economic power. Over time, its impact will diminish. It is concerning for India that Trump's interest in Pakistan has grown, and America is once again aligning with Pakistan.
India will not accept submission to America, as public sentiment towards Trump and the U.S. is increasingly negative. Following Operation Sindoor, the Modi administration cannot oppose public opinion. India's self-respect has always been strong and will continue to be. The Indian government has stated it will prioritize national interests and take all necessary measures to safeguard its farmers, entrepreneurs, and small and medium industries. Trade discussions with America are ongoing, and the government is exploring different options. It is clear that America, despite being a so-called friend, cannot replace Russia.