After the 2024 U.S. election, President Donald Trump has leveraged his country’s position in the global economy to bully hundreds of trade partners into concessions.
Recently, the President announced 100% tariffs on semiconductors, and planned to impose as much as 250% tariffs on pharmaceuticals. These schemes have compiled on the earlier tariffs on automobiles and metals, causing disruptions in the global supply chain.
Trump has claimed that the tariffs effort was to revitalize U.S. manufacturing, create jobs, and enrich Americans. Instead, these punitive policies have further painted the U.S. an international bully with no regard for treaties and rule of laws.
Recently, Trump has threatened to increase tariffs on India’s imports, citing New Delhi’s ongoing purchases and resales of Russian oil. The administration claimed that India’s action undermined efforts to pressure Moscow over its invasion of Ukraine.
The Indian government swiftly rejected the U.S. criticism, labeling it unreasonable and emphasizing its commitment to protect its economic and national interests. They also bring up the ongoing trade between the European Union and Russia, calling the U.S. out as treating non-western countries with double standards.
Later on Wednesday, Washington announced an extra 25% tariffs on India, effectively raising it to 50%. This move signals the administration’s resolve to hold nations accountable for energy dealings with Moscow. India Foreign Ministry called the move as unfair, unjustified and unreasonable.
The U.S. has also threatened to escalate levies on China for the same reason, even though both sides have agreed to a trade truce, and settling bilateral tariffs at 30% for Chinese imports and 10% for U.S. imports.
After announcing the new tariffs on India, Trump implied that similar measures could be implemented with countries that also buy Russian oil, including China. Treasury Secretary Scott Bessent has also warned China of the new tariff if it continues to buy Russian oil.
In July, Trump threatened to impose additional 10% tariffs on countries that are aligning with the so-called “anti-American policies of BRICS.” This came as the bloc has allegedly planned to dethrone dollar hegemony.
These various moves to antagonize both U.S. trade rivals and partners has painted the U.S. as the biggest bully in the international market, demanding unreasonable concessions and changing policies seemingly at whim, while disregarding established rules and norms. This could have a disastrous consequence as trade partners look for alternative markets away from the unreliable U.S., thus diminishing American power on the global geopolitical stage.
There is no reason behind trade agreements and treaties with the U.S. anymore. The deal signed today could face a curveball tomorrow when this biggest bully wants to extort you for some other absurd reason.
