Ac. Gun’iindra’nanda Avadhu’ta
The inception of Trump as the President of the USA initiated an unusual Tariff War in the Geo- Politics of the World’s nations which knows no halt. One after another tariffs are being imposed by America on different things which made the nations of the world reorganize the markets for their products.
There is no doubt that the USA poses the largest market in the world for the manufacturing and producing countries. They make good money by exporting their goods to America. China, India etc. are the pioneers in the row to export goods in billions of dollars every year. But the imposition of tariffs on goods and its escalating trending signalling a sort of power pressure to compel these nations to accept the terms which the USA dictates has been rendering an awkward siren around the world to think about the alternative markets. The equation of export and import relationships is shifting from the USA to other nations. On the other hand, due to tariffs the prices of commodities are increasing in the USA exerting a heavy pressure on its citizens which has started a sharp reaction among the people and the intellectuals of the country.
The erstwhile SCO Summit held successfully in China exhibited the new trend of reorganizing of the world nations to renew their trade relationships in a very congenial atmosphere beyond the tariff sanction of the US. It boomeranged the intentions of Trump and left America considering to revise its own decisions.
China, though antagonist with India especially on the Border issues, has come closer and once again renewed their friendship to effect several bilateral trade agreements. Russia offered more business to India at a very reliable prices. India is making deals with France to import aircrafts instead of the US. Moreover, India is now prepared not to succumb to the tariff pressure of the USA and renewed its commitment to continue purchasing crude oil from Russia having been close friends with old cultural relationships. The other South East nations like Indonesia, Vietnam etc. in search of alternative markets declared the Summit quite relaxing of the trade tensions created by America. Brazil has been more comfortable to promote the cause of BRICKS nations and prefer to deal in trades with the associated nations caring least for the US to pay undue favor to its interests. The tariff mess of Trump offered a genuine cause for BRICKS nations to accentuate the consolidation of their trade relations creating an alternative trade zone.
In the recent twist in the sequel of tariff menace beyond the decision of the USA to impose a heavy Tax tariff on the annual income for those technocrat Indians who are working in the USA having HB1 Visa and earning handsome money has created a new wave following which European countries have opened their hearts to welcome Indians in their countries to give jobs by relaxing their terms. It would again be a big jolt to the USA where Indians and the Chinese workforce are more working there in different sectors. It will prove a setback for the USA to lose the skilled workforce which its economy requires. It is quite unpalatable for the US to digest. No countries with big and mediocre economies wish to comply with the US intention of tariff which is a sign of diminishing the US autonomy in dictating the terms as it wishes. Thus the tariff game of Trump(the US) to remain dominant in the world market did not prove worthwhile which cost has to be paid by its economy. No nation likes the supremacy of the one by the way of unusual Tariff rather the coordinated cooperation among the nations of the world in the matters of trade is the need of the hour. The US seems to be losing its ground by imposing tariff unconscientiously.
In principle, PROUT (Progressive Utilisation Theory) suggests to promote the smooth flow of economic forces. The import and export relationship depends upon the needs of the socio-economic units (Sama’jas) which should be practical and rational to cater to the needs (consumption) of their population. PROUT makes no scope of autonomy in economic flows (trades). Tariff should not be used to teach lessons to make other economies vulnerable by the dominant one. The economic dominance inspires unhealthy competition and exploitations which goes ultra vires to the interests of the humanity as a whole.
Ac. Gun’iindra’nanda Avadhu’ta
