US President Trump’s tariff war against the world has drawn attention to how much trade interdependence can be exploited by the powerful to the detriment of the weaker or smaller economies. Considering that the purpose of trade and commerce is to manufacture cheap and provide affordable goods to consumers while making a profit, any kind of monopolistic hold that is not regulated can be detrimental to the health of the overall economy. Historically, of course, such situations have led to innovations and technological breakthroughs that have provided alternatives to such strangleholds. In the present day, science and technology are developing so rapidly that shifts in manufacturing patterns can take place much faster.
Under the circumstances, while Donald Trump might seem to have exploited the American economic advantage by ‘opening up’ the global market for goods made in his country, the fact is any such ‘neo-colonial’ bullying will be countered by those affected. It must be remembered that all the sanctions imposed on countries like Russia or Iran have only succeeded in making them more self-reliant in the long run. There is an extent to which these strategies can work.
Trump is also furious that many nations are considering ‘dedollarising’ transactions, thereby freeing themselves from the hold the currency has over global trade. He has particularly targeted the BRICS nations for this and threatened even greater tariffs. While this may just be bullying and there may be little he can do to harm these economies, it is important that the right counterstrategies be implemented. Large countries like India, China, Russia, etc., have already progressed far down the road of self-reliance as they have ample human resources, raw materials, thriving industry, infrastructure, etc. It is only the animosity that exists between India and China that allows the US to play its tariff card. Should India and China, which are already quite compatible economies and have thriving trade, settle the outstanding issues between them, Trump would have no cards to play. And if the smaller nations in the region, along with other nations of the South, tie up with these major economies, the US would end up being the real loser.
It is only politics that is getting in the way. The world’s upcoming economies would be able to thrive and cooperate to everybody’s benefit if the silly regional rivalries could be overcome. The US should not be allowed to further ‘divide and rule’ as it has done for so many years now.
