When Friends Turn Foe

SELF INTEREST IS THE best interest. So said the classical economist Adam Smith very many years ago. Perhaps, the unfolding events across the globe sort of validate this classical notion. How else could one declas­sify the avalanche of actions unleashed by Donald Trump ever since he returned to the White House for a second term after a four-year hiatus?

Listen to this article

Not a day passes without a unilateral an­nouncement of tariff punishment on one country or the other. Indeed, Trump has gone on an extremely unpleasant excursion with his unpredictable daily pronouncements. Besides pushing the geo-politics of the world into an entirely new unstable and volatile terrain, Trump’s “I care none” strategy is hastening the inevitability of a new global alignment. Signif­icantly enough, the blow-hot Trump is turning out to be the cause for the formation of a new alignment where the so-called friends and foes of the past could be rubbing shoulders with each other. His belligerent use of tariff stick is sought to be justified on the ground that Amer­ica has been wronged for a long time by many nations who have imposed disproportionately higher tariffs on products from the USA. No doubt, Trump is an aggressive president. But is he a shrewd politician? One can debate this until the cows come home. The answer will depend on which side of the table one is on. Why has he chosen to open up all fronts simul­taneously? This remains a mystery for both experts and laymen alike. Perhaps, Trump has become the prisoner of his impulse.

What has come as a rude shock for many political pundits is his out-of-blue antagoni­sation of India with whom Trump seemed to have gotten well. It comes especially at a time when both Washington and New Delhi were in the midst of intense trade negotiations. Neither side would disclose what had gone wrong. Grapevines suggest that the issue of opening up the farm sector could have turned the relationship sour. President Trump has justified the steep tariff hikes on the ground that India continues to purchase oil from Russia, which is still embroiled in prolonged war with Ukraine. Trump has accused New Delhi of funding Russia’s war by buying oil from them.

Will his tariff hammer drive New Delhi to bend to his trade will? Well, it is too early to comprehend the full implications of the deep rupture in the relationship. With trust evaporating in the wake of avoidable public posturing against India, Prime Minister Narendra Modi-led NDA government at the centre will do well to go for a more inclusive outlook in the fast-changing dynamics of the geo-political environment. Etiquette is part of geo-politics and global diplomacy. When it is thrown to winds, disorder sets in. Then chaos follows, self interest takes over. Well, the world is rediscovering the words of Adam Smith!

Latest

India Post records highest ever Q1 revenue

The Minister held Business Review Meeting with all 23...

MRF ranked India’s most valuable tyre brand

The company also featured among the Top 50 most...

Aditya Birla Group buys Shell’s renewable arm for $1.8 bln

The company will make the acquisition from Shell Overseas...

TVS Emerald to develop residential project in West Chennai

The Koyembedu–Poonamallee corridor, a rapidly expanding residential micro-market that...

Newsletter

Don't miss

India Post records highest ever Q1 revenue

The Minister held Business Review Meeting with all 23...

MRF ranked India’s most valuable tyre brand

The company also featured among the Top 50 most...

Aditya Birla Group buys Shell’s renewable arm for $1.8 bln

The company will make the acquisition from Shell Overseas...

TVS Emerald to develop residential project in West Chennai

The Koyembedu–Poonamallee corridor, a rapidly expanding residential micro-market that...

Retail Inflation crosses 4% in June

“Food inflation contributed 185 basis points (bps), while non-food...

India Post records highest ever Q1 revenue

The Minister held Business Review Meeting with all 23 Circles of India Post, which reviewed performance and charted the roadmap for the months ahead. India...

MRF ranked India’s most valuable tyre brand

The company also featured among the Top 50 most valuable brands in India across sectors in the report. Brand Finance India report, unveiled under the...

Aditya Birla Group buys Shell’s renewable arm for $1.8 bln

The company will make the acquisition from Shell Overseas Investment B.V and the transaction is amongst the largest acquisitions in India’s renewable energy sector...