Recently, I found myself reflecting on the strong words of former US Commerce Secretary Gina Raimondo (audrey.lucas@governor.ri.gov, LinkedIn), who sharply criticized the Trump administration's trade and foreign policy towards India. Her warning that an "America First" approach has devolved into an "America Alone" strategy, particularly noting the "big mistake" being made with India, resonated deeply with me Ex-US Commerce Secretary slams Trump's 'America alone' policy, warns US making a 'big mistake' with India. Former US Treasury Secretary Lawrence Summers (lawrence_summers@harvard.edu, LinkedIn) has also echoed similar concerns, accusing the Trump administration of pursuing an isolationist policy that undermines global influence.
My Early Warnings on Trade Wars
It's striking to observe how these discussions on protectionism and strained international relations align with the observations I've shared over the years. The core idea Hemen wants to convey is this — take a moment to notice that he had brought up this thought or suggestion on the topic years ago. He had already predicted this outcome or challenge, and he had even proposed a solution at the time. Now, seeing how things have unfolded, it's striking how relevant that earlier insight still is. Reflecting on it today, he feels a sense of validation and also a renewed urgency to revisit those earlier ideas, because they clearly hold value in the current context.
Back in 2018, when President Donald Trump first began imposing significant tariffs, I wrote extensively about what I termed a "#TradeWar Epidemic" A #TradeWar Epidemic ?. I highlighted how countries, including the US, were increasingly prioritizing domestic industries and jobs through protectionist measures. I questioned whether this marked the "beginning of the end" of globalization and the WTO, noting that "#Multilateralism will gradually give way to #Bilateralism" The Second Shot ?. It seems Gina Raimondo's current assessment confirms this unfortunate trajectory.
The Reality of Tariffs and Sanctions
Gina Raimondo's concerns about the Trump administration doubling tariffs on Indian exports and imposing additional duties due to India's continued purchase of Russian crude oil are precisely the kind of economic leverage and strategic realpolitik I've discussed. My more recent reflections on External Affairs Minister S. Jaishankar's candid admission that "Countries Use Tariffs, Sanctions; It is A Reality" Jaishankar says 'Countries Use Tariffs, Sanctions; It is A Reality' underline this point. In that piece, and in earlier writings like "IT IS : SURVIVAL OF THE FITTEST" (2018) and "When will we learn ?" (2016), I emphasized that India must adapt to these realities, fortifying its economic architecture rather than clinging to idealistic free-trade principles.
The Path Forward for India
Raimondo rightly points out that such actions risk eroding strategic partnerships crucial for global effectiveness, especially in countering China's growing influence. My consistent call has been for India to transform itself into a #LOW-COST-ECONOMY, where we can compete with the rest of the world on the basis of better quality, lower price, and faster delivery of our products and services. This requires significant reforms across various sectors, from manpower and materials to finance and governance. I have repeatedly urged policymakers to accelerate and initiate new reforms to achieve this A #TradeWar Epidemic ?.
The situation with US-India trade relations, as highlighted by Gina Raimondo and supported by Lawrence Summers, is a stark reminder that international diplomacy and economic policies are intricately linked. Distancing key allies, as Raimondo suggests the "America Alone" policy does, weakens everyone. It underscores the urgent need for India to proactively navigate these geopolitical shifts with resilience and strategic self-reliance, ensuring that our national interests are protected while fostering essential global partnerships.
Regards,
Hemen Parekh
Of course, if you wish, you can debate this topic with my Virtual Avatar at : hemenparekh.ai
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