Donald Trump came to power in America with the catchy slogan of Make America Great Again. However, he has done exactly the opposite in the last few months after becoming the President of America for the second time this year. Trump was worried that America had become only a consumer of goods manufactured in other parts of the world and services provided from different parts of the globe. He promised to make America the factory of the world again. He did not realise that manufacturing of goods had been outsourced because labour, both skilled and unskilled, was cheap in Asia and Latin America, and this arrangement was benefitting both the American economy and citizens. Besides, the replacement of the existing mechanism of supply chain is not easy and time consuming. The tariff war he has launched against the world is a desperate action to bring the American economy back to manufacturing and self reliance. This will backfire on the American economy. Trump’s fluctuating statements on his tariff policy to safeguard the American economy have done more harm to America than good. No country in the world knows as to how to adjust to the tariff demand of Trump as he keeps his goalpost shifting. This has thrown the global economy in a disarray and dented the image of the office of the American President in an unprecedented manner.
Trump’s policy has alienated friends if not turned them to enemies. It will put America in a position of a strategic and diplomatic bind. No sane American President will push India close to China because that is not desirable for obvious reasons. The proximity of India with Russia is not new and it is an alibi to put harsh tariff rates on India. India has been buying defence weapons from Russia since independence and a friendly relation would ensure their maintenance. India can not stop buying new Russian platforms as these are cheap and affordable and Russia is also ready for technology transfer and their manufacturing in India under joint venture. America is not ready to give these facilities to India. The cost of American platforms are too high and their performance in the actual battlefield does not justify their price. That’s why America has to browbeat India and other nations to buy American platforms. Buying Russian crude oil at a discounted rate from Russia is not a new development. Meanwhile, Trump has imposed a twenty-five per cent tariff on India. An additional tariff of twenty-five per cent has also been slapped for importing Russian crude and thereby allegedly funding Russia, enabling her to continue to wage war with Ukraine. This is a childish alibi for singling out India while other countries, including America are importing energy and other goods from Russia. The bone of contention is the agricultural and dairy sector, which Trump wants India to throw open for American agricultural and dairy products. Prime Minister Modi has refused to do so. It is quite logical as a large population of India is dependent upon agriculture and cattle rearing and their vulnerability can not be exposed to cheap and highly subsidised American products. Moreover, the Americans feed their cattle fodder which also contain meat. This can not be acceptable to India because of religious considerations. The Trump presidency has done incalculable harm to the world economy and global diplomacy. All the rule books of diplomacy and trade has been torn to pieces by Trump. He is acting like a mad bull in a China shop. The result is open defiance by Brazil and India.
A counter alliance to America and NATO has started taking shape in the form of RIC (Russia, India, and China). It is too early to say how it will take shape. The Indian and Brazilian retaliation would also hurt the American economy also. What India and the rest of the world need is patience. Americans would soon realise what harm Trump has done to the American nation. Till then, the Indian leadership should give a nuanced response. At the same time, all measures should be taken to safeguard the Indian economy and prestige.
The writer is an eminent academic and political commentator
Banshidhar Rukhaiyar