We Must Resist Economic Imperialism by the United States

The declaration of a steep 25 percent tariff on all Indian products and services exported to the United States, effective from August 1, besides the threat of imposing additional tariffs as penalty for India’s trade relations with Russia is a major challenge for the country’s economic sovereignty which we must fight and defeat at all costs.

The unilateral declaration from the US president Donald Trump is a big setback for Prime Minister Narendra Modi and his government as they were hoping for preferential treatment from the US in economic matters as Indian authorities were making every effort to cajole the imperial power in all major international issues, including support to Israel in its genocidal war on Palestinian people. In fact, the US has declared unilateral imposition of tariffs even as both countries were continuing discussions on a bilateral trade agreement.

The US administration under Trump has been claiming their country was being fleeced by trading partners who dumped their goods on the country. They claimed the US tariffs were very low and in order to set right the balance of trade in their favour, imposing higher tariffs was mandatory.

The fact, however, is much more complicated. The US is importing at its free will and no one is imposing anything on them. It also enjoys a stranglehold in global trade as most of the transactions are done through the US dollar. The result has been a global hegemony on trade which the US has used for extraneous gains like putting political pressure on countries which refuse to toe their line. Trade and economic sanctions have been converted by the US as weapons in their war for global hegemony. They dictate what policies other countries should pursue, they even dictate which parties and leaders should be elected. They openly interfere in other countries’ internal affairs including running of their judiciary.

India tried to accept much of these pressures and even accepted the US leadership in the QUAD alliance, which was put together by the US to isolate China. But such submissive policies did not help India. In fact, it now finds itself isolated as the anti imperialist alliance of southern countries is now in shatters.

The criminal nature of US agenda is very clear considering that Trump has also announced a 50 percent tariff on Brazil, which has refused to take orders from them. President Lula has made it clear that his country would not budge before US pressure. Trump’s demand is that Brazil’s judiciary should put an end to their criminal investigations against former president Bolsonaro, a Trump buddy accused of election malpractices. Trump has also claimed that he is putting penalty tariffs on India because of its trade with Russia, only to support the Ukrainian people! This is the height of hypocrisy as he is the man who insulted their President before the world meda when Zelensky called on him at White House recently.

Hence it is very clear that India should refuse to accommodate US pressure tactics. Any acceptance of such tactics would put India’s national interests into serious trouble. We may have to face some difficulties as some of our export businesses might face temporary hits, but protecting our nation’s sovereignty is of paramount importance. Hence it is our duty to stand united against the global bully.

BM Kamble
National Vice President
Social Democratic Party of India