Narendra Modi Govt Has Become An Apologist For U.S. On Trump’s Coercive Tariff Hikes

By P. Sudhir

The US President Donald Trump, in his first address to the US Congress following his election, has threatened to impose tariffs on countries that he considers are taking advantage of US trade policies. In his list is India, along with Canada, Mexico, China, Brazil and the European Union. Trump has repeatedly named India as a country that is levying exorbitant tariffs on US products. He even called India a ‘tariff king’. Trump threatened that from April 2, he would levy ‘reciprocal tariffs’.

The US has imposed an additional 25 percent tariff on steel and aluminum products from Canada, along with various goods exported to the US from Mexico and China. These actions have been met with strong opposition from the affected countries, as they violate multiple trade agreements previously concluded with the US, as well as World Trade Organisation (WTO) rules. In response, Mexico and China have imposed retaliatory tariffs on US products, and Canada has also announced its intention to do the same. Unlike these countries, the reaction of the Indian government has been rather tame.

The Indian government chose not to respond even after President Trump claimed that India had agreed to “significantly reduce tariffs on American products.” When questioned, Foreign Secretary Vikram Misri stated that “tariff liberalisation has been a component of India’s trade agreements.” Stripped of its diplomatic language, this suggests that the government has effectively yielded to US pressure. A glimpse of this capitulation was evident in the Union Budget, which reduced tariffs on Harley-Davidson motorcycles, Bourbon whiskey, electric vehicles, wines, and other products.

Prime Minister Modi was among the few foreign leaders who rushed to greet Trump after his re-election. The BJP and its media allies portrayed this visit as a recognition of Modi’s leadership. However, behind Trump’s flattery lay the hand-wringing that Modi was subjected to. During their joint press conference, Trump continued his criticism of India’s tariffs on US goods, while Modi conveniently opted to remain silent. The Indian government sought solace in the fact that the joint statement mentioned working toward a “comprehensive bilateral trade agreement.” The BJP government thinks that India can escape from US tariffs by negotiating the bilateral trade agreement (BTA).

The true nature of the proposed Bilateral Trade Agreement (BTA) was revealed during a recent media interaction with US Commerce Secretary Howard Lutnick. He stated that India and the US should aim for “something big” in trade, emphasizing that the agreement should not be approached “product by product” but should instead encompass the “whole thing.” To remove any ambiguity, he explicitly stated that the US wants India to “open up its agricultural market.” Through the BTA, the US is not merely seeking tariff concessions; it is demanding broader changes, including reductions in agricultural subsidies, opening government procurement to US companies, amendments to patent laws to benefit US pharmaceutical companies, and unrestricted data flows. It needs to be noted here that Lutnick’s comments were made after his meeting with the Indian Commerce Minister in the US.

Opening up India’s agricultural sector to the US through the BTA and reducing tariffs would have disastrous consequences for the country. Nearly 70 crore of our people depend on agriculture for their livelihood. Allowing US agricultural products into the Indian market through concessions would spell disaster for a large number of our people already grappling with a prolonged agrarian crisis.

Similarly, diluting India’s patent laws would be a killer blow to the domestic industry, particularly the pharmaceutical industry, which produces affordable medicines compared to the exorbitantly priced drugs in the US market. The reduction of tariffs on electric vehicles, is designed to facilitate the entry of Tesla automobiles, produced by Elon Musk, Trump’s trusted lieutenant.

In what is becoming a recurring pattern, the Indian government is increasingly becoming an apologist for the US and its coercive tactics. When the US deported the first batch of Indian illegal migrants in a military plane, shackled and mistreated, the Minister of External Affairs falsely claimed that “women and children” were not subjected to such treatment. He shamefully justified the US actions by stating that handcuffing and shackling were “standard operating procedures.”

Only after widespread public outrage did the government meekly issue a statement through its spokespersons, saying it would bring the matter to the attention of the US administration. There was no strong condemnation or protest registered, as one would expect.

In stark contrast to the BJP government’s submissive stance, smaller countries like Mexico and Colombia have strongly protested when their citizens faced similar mistreatment. Colombia, for instance, sent its own military planes to bring back its citizens and refused entry to US military planes.

On the issue of tariffs, too, the BJP government is acting coy. During a visit to London, the External Affairs Minister inexplicably stated that the US administration’s moves toward multi-polarity suits India’s interests. When questioned about tariffs, he again deflected attention by referencing the proposed Bilateral Trade Agreement (BTA).

The statements and actions of BJP ministers make it increasingly clear that they are bending over backward to placate the US. They seem willing to pay any price, even at the cost of sacrificing India’s core interests in sectors like agriculture. The government is working hard to finalise a trade deal that would please Trump before he visits India for the QUAD summit, which India is hosting later this year. In its eagerness to be part of the “shared enterprise of QUAD,” the BJP government is compromising India’s self-reliance and national sovereignty. This should not be allowed under any circumstances.

It is imperative to expose the Modi government’s surrender to US imperialism and mobilise people in large numbers. The future progress and sovereignty of our country are at stake. (IPA Service)