As I was about to write this editorial in less than 24 hours of announcing 25% tariffs on India, Donald Trump announced an additional tariff of 25% on Indian imports to the US. The pretext for this latest move is that India is buying oil from Russia and thereby allegedly supporting Russia in its war with Ukraine. Now, this comes as a shocker for the entire business community. India has rightly termed the move as unfair, unjustified and unreasonable.
Let's be clear about the pretext that the United States has given this time. If we look at the trade figures of the United States and Russia, it still continues to import a number of products including fertilizers, chemicals, uranium, metals, iron and steel and other smaller imports from Russia. Singling out India, a nation that must ensure energy security for over 1.4 billion people, is not a principled stand, it is a selective and coercive tactic. This is a perfect example of the pot calling the kettle black.
India is a sovereign nation with every right to protect the interests of our people. This is not geopolitics, this is clearly bullying, complete hypocrisy to pressure a key trading partner like India and I am sure we are not going to bow down to the demands from Washington.
Our anger, dissatisfaction over the move is more than justified but at the same time, anger is not the solution. We must build a long-term strategy to counter tariff obstacles, and the government is rightly laying the foundation for one. It has announced a new initiative, the Export Promotion Mission that is expected to provide export credit access to exporters, address non-tariff obstacles, provide warehousing and ecommerce facilities, and build ‘brand-India’ globally. Also, this tariff threat is a wake-up call for us. We must look beyond the United States, and accelerate and strengthen our trade negotiations with other economic blocs such as the European Union, ASEAN, Africa, Latin America. Building alternative trade avenues is no longer an option, it is imperative for our economic security.
If we all play our cards well, I would say these tariffs, though intended to punish us, might act as a catalyst India needs. It's time to diversify our exports, provide the much needed support to the exporters through the announced mission and strengthen our trade with other countries. I would not call for tit-for-tat action, but for a resolution that we will take this unreasonable move as an opportunity to gain economic sovereignty from the United States.
