Prime Minister Narendra Modi faces his toughest time as P. M so far and that too after signing the joint statement on February 13, 2025 at the time of Prime Minister Modi’s visit to U S A and that also after the bonhomie exhibited between President Trump and Prime Minister Modi, there came the great betrayal of trust and understanding arrived at through their new initiative under the “U.S.-India COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century’ – to drive transformative change across key pillars of cooperation. Under this initiative, they committed to a results-driven agenda with initial outcomes this year to demonstrate the level of trust for a mutually beneficial partnership”. But what happened to the trust for mutually beneficial partnership? President Donald Trump has exposed himself through his actions to the world what a deceitful, hypocritical and untrustworthy person that he is?
While negotiations were going between Indo American officials on solving tariff problems, President Trump unilaterally announced imposition of higher tariff with penalty on India. “They have one of the highest tariffs in the world now, they’re willing to cut it very substantially,” Trump told reporters. “We’re talking to India now – we’ll see what happens … You’ll know by the end of this week.”
The mercurial, highly egoist President Trump who possess a very high sense of pride in his power by which he likes to subjugate others to force irrespective of whether they are his friends or foes, his line of thinking to get his objectives fulfilled. When he first raised tariff by 25% with and subsequently with further increase of 25% with penalty on the flimsy ground that India is trading with Russia by purchasing oil and armaments which funds Russia’s Ukraine war. It was nothing but political bullying.
But President Trump was in for a great shock and surprise when he received India’s response from P. M. Modi to his bullying when he responded stating “For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know personally, I will have to pay a heavy price for it, but I am ready for it. Today, India is ready for the country’s farmers, fishermen and dairy farmers,” That was the boldest ever statement against America made by any Prime Minister of India till now by straight away rejecting the tariff imposition.
President Trump forgot the fact that he can bully some of the nations all the time. All the nations some of the time. But not all the nations all the time. His rhetorics are coming out of an inherent fear of losing American global standing as the most powerful nation, economically and militarily, in the world in the wake of China, the competing power with America and the emerging power India. In this connection what Fulton J. Sheen, an American religious leader, evangelist, writer, Roman Catholic priest, and radio and television personality said is worth recollecting, “Pride is an admission of weakness; it secretly fears all competition and dreads all rivals”. President Donald Trump has too much pride and ambition, but he should not forget the old dictum “Pride goes before a fall” and what Shakespeare exposed in his play about Julias Caesar “If I fail it is only because I have too much pride and ambition” which is applicable to Trump also.
The positive assertiveness shown by India as a sovereign nation has now become the rallying point for other countries like the BRICS group of nation, Indonesia, Thailand, Philippines, Japan, Korea and even the European Union nations. India has already entered into a Free Trade Agreement with Britain recently. It is with great interest and anxiety that the world is looking up to America as to what steps they are going to take against the nations who have trade relations with Russia particularly China and European Union nations which are not subjected to severe tariff imposition. Brazil and India are the two nations belonging to the BRICS group have been subjected to 50% tariff for the fragile reason of dealing with Russian oil trade. But USA has ongoing trade relations with Russia. The quantum of trade of China, America and European Union have with Russia is much more than that of India and yet they have been favoured with concessional tariffs. China is a competing rival to USA and USA has got a huge trade deficit with China and they cannot afford to break the supply chain with China due to supply of vital material required for manufacturing. European Union is a NATO ally of USA. Dependency of USA on China and Russia exposes the vulnerability of USA. The time for reckoning has come for USA and they will have to face some unpleasant truths that strongest position is not always permanent and reality can be brutal, and it’s also the best teacher. But will President Trump learn from the reality he is facing that there is no permanent friendship but only permanent interest in politics?
“The very heart of being a sovereign nation is providing security of one’s borders, of one’s internal situation, and security against anyone attacking one’s nation. That is the very heart of what I believe is sovereignty.” (John Warner- American politician) Time has come for Narendra Modi as Prime Minister of the largest democracy of the world to protect its sovereignty. “Everyone has his own specific vocation or mission in life; everyone must carry out a concrete assignment that demands fulfilment. Therein he cannot be replaced, nor can his life be repeated; thus, everyone’s task is unique as his specific opportunity to implement it” as observed by Viktor E. Frankl- Austrian psychiatrist and psychotherapist.
P.M. Modi has taken the first step when he categorically rejected the tariff announcement of President Trump. Now he has to devise his strategy to withstand the pressure to extract maximum advantage from tariffs and allied threats by President Tump till the end of his tenure as President. The following actions can be initiated to protect India’s interest.
- India can approach World Trade Organisation as a country affected by unjustified tariffs and penalty imposed by President Trump through an executive order on the flimsy ground of dealing with Russia and funding Russia in the ongoing war with Ukraine and to exercise India’s legitimate right to retaliate with equivalent tariffs which will not be construed as a show of aggression, but as an act to balance and credibility in its trade relationships being a genuine reciprocal action unlike Trump’s fake ones. Non retaliation will be taken as a sign of weakness and make Trump to put more pressure.
- There may be voices against taking any retaliatory actions because of the fear that American President may take further drastic action against India. But if President Trump is allowed to take further punitory actions with impunity, it will create a dangerous precedent. Trade relationship is based on mutual respect and understanding respecting sovereignty of both nations and if it is not respected, the imbalance becomes permanent and damaging and it will be self-defeating for India.
- Refusing to open Indian markets to U S agriculture and dairy imports is very vital for India because it will also adversely impact American consumers also. Besides, it will be political hara kiri for BJP since nearly 40% of the Indian population depend on agriculture.
- India is the biggest global consumer market and it is the trump card for India and this position should be exploited fully. As of now, India has nothing to offer that is politically or economically viable. Tariff is the only alternate tool available to India. India has solid arguments like economic fairness, political constraints, energy security. But Trump does not care for logic and fairness. He is an absolute businessman believing in transactional business of profit and loss in his transactions. His ego is such that he does not accept that his tariff regime he has imposed on others may become counterproductive and boomerang on him in due course of time inflicting collateral damages also.
- It seems that President Trump followed the footsteps of the 25th President William McKinley who introduced the Tariff Act of 1890 commonly called the McKinley Tariff imposed the high tariff regime and subsequently it was replaced with the Wilson-Gorman Tariff Act in 1894 with lower tariff rates after experiencing the adverse impact of McKinley Tariff.
- Considering the current scenario, India has to take a proactive stand by avoiding a direct confrontation where ever possible since India cannot afford to lose the American market and preparing for long campaign by building a flexible but firm trade strategy, investing in export diversification to ease US pressure. At the same time internal market cannot be overlooked besides finding alternative global markets, increasing self-reliance, encouraging research and development, creating a conducive environment of ease of doing business through which a more vibrant and sustainable economy can be created.
“Experience is not what happens to a man. It is what a man does with what happens to him.” (Aldous Huxley)
“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands in times of challenge and controversy.” (Martin Luther King Jr.)
Steadfastness in the face of trouble is the hallmark of a really great and an astute man and it is a basic tenet throughout the Scriptures that God rewards diligence, faithfulness, endurance, and steadfastness. The indomitable Indian Prime Minister leads this heritage nation with diligence, faithfulness, endurance, and steadfastness with true grit keeping the nation first and he is bound to win the war of tariffs imposed by Donald Trump on India. Prime Minister Modi has already demonstrated what kind of a leader that he is.
JAI HIND
T. R. Radhakrishnan
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