Targeting India and China with Economic Threats, Ignoring History and Hypocrisy, While Ignoring the Coming Storm of Inflation and Job Losses
The West’s energy hypocrisy during the Ukraine war exposed a brutal truth: sanctions were never about morality—they were about power. While the U.S. and EU continued buying Russian energy through legal loopholes and corporate subterfuge, they demanded India sacrifice its economic stability for geopolitical posturing. This double standard didn’t just alienate a key ally—it revealed the hollowness of America’s “rules-based order” and pushed the world closer to a fragmented, multipolar system where might makes right.
The specter of a second Trump presidency looms large over the global economy, carrying with it the chilling promise of escalated trade wars. At the heart of this threat is what critics decry as “Tariff Terrorism”: a policy of aggressive, unilateral tariffs designed to bludgeon trading partners into submission. Nowhere is this more evident than in Trump’s renewed targeting of Asia, particularly China and India, with proposals like a 60% blanket tariff on Chinese goods and a 10% universal “baseline” tariff on imports from all nations. This isn’t just tough negotiation; it’s economic coercion with profound consequences for the targeted nations, the global trading system, and, critically, the United States itself.
The West’s Hidden Dependence on Russian Energy
While the United States and European Union publicly condemned Russia’s invasion of Ukraine and imposed sweeping sanctions, their own energy purchases from Moscow told a different story. In 2022, the EU imported a staggering €135 billion worth of Russian fossil fuels, accounting for nearly 40% of its natural gas and 25% of its oil supplies. Germany, Europe’s largest economy, continued paying Russia over $1 billion per month for gas through the first year of the war, even as it lectured India about “moral responsibility.” Meanwhile, the U.S. increased imports of Russian uranium by 24% in 2022, a critical component for American nuclear power plants, while simultaneously threatening India with sanctions under CAATSA (Countering America’s Adversaries Through Sanctions Act) for purchasing discounted Russian crude.
This glaring double standard was further exposed when Belgium, France, and Spain became covert hubs for “laundered” Russian LNG, rerouting shipments to avoid public scrutiny. Investigative reports revealed that European companies simply changed paperwork to label Russian fuel as “Belgian” or “French” origin, allowing imports to continue uninterrupted. The U.S., despite banning direct Russian oil imports in March 2022, kept buying Russian uranium under a loophole—since nuclear fuel was classified as a “critical exemption.”
India’s Pragmatic Energy Strategy vs. Western Pressure
India, which imports over 85% of its oil needs, faced an impossible dilemma when global energy prices skyrocketed after the Ukraine invasion. Unlike the EU—which had decades of infrastructure tying it to Russian pipelines—India had no such dependence. Yet when New Delhi sought to cushion its economy by buying discounted Russian crude (saving $7.9 billion in 2022 alone), it faced relentless U.S. pressure.
The hypocrisy reached its peak when:
- The EU bought 2.5x more Russian oil in 2022 than India, yet only India was publicly shamed.
- The U.S. Treasury granted waivers to European banksprocessing Russian energy payments, while warning Indian refiners of “secondary sanctions.”
- Germany continued importing Russian gas via Nord Stream until the pipeline was sabotaged, while U.S. officials demanded India “show solidarity” by cutting ties immediately.
India’s response was pragmatic: “We will buy oil from wherever it is cheapest for our people.” This stance was backed by data—diverting from Russian crude would have spiked fuel prices by 18-25%, crushing India’s post-pandemic recovery. Meanwhile, the West’s sanctimonious demands ignored the reality that EU nations were still funding Putin’s war machine at a far greater scale than India ever could.
The CAATSA Threat: A Weapon Against Allies, Not Adversaries
The U.S. repeatedly wielded CAATSA—a law designed to punish countries doing business with Russia—as a cudgel against India, even as American and European firms kept trading with Moscow. Key examples of selective enforcement:
- India’s S-400 Deal:The U.S. threatened sanctions when India purchased Russia’s S-400 missile system in 2018, despite Turkey (a NATO ally) facing no real consequences for buying the same system.
- Oil Payments in Rupees:When India devised a rupee-ruble mechanism to bypass dollar sanctions, U.S. officials decried it as “helping Putin,” while turning a blind eye to EU countries paying Russia in euros via Gazprom.
- The “Ghost Tanker” Loophole:Over 1,400 uninsured vessels (many owned by European shipping firms) smuggled Russian oil under the radar, while India’s transparent purchases were singled out for criticism.
The Economic and Strategic Fallout of Western Duplicity
The U.S. and EU’s contradictory stance eroded trust among Global South nations, accelerating two dangerous trends:
- De-Dollarization Push:India, China, and BRICS nations fast-tracked local currency trade to escape U.S. financial coercion. By 2023, 25% of India-Russia trade was conducted in rupees and rubles, bypassing the dollar.
- Strategic Realignment:Forced into a corner, India deepened ties with Russia and Middle Eastern oil suppliers, while the EU scrambled to replace Russian gas with more expensive (and dirtier) U.S. LNG.
Bulldozing Asia: India and China in the Crosshairs
Trump’s approach is blunt force trauma disguised as policy:
- China: The 60% Bludgeon:The proposed 60% tariff isn’t calibrated; it’s a wrecking ball aimed at decoupling. It ignores the deep integration of Chinese manufacturing into global (and American) supply chains. The goal may be to cripple China’s economy, but the immediate effect would be massive disruption, sending shockwaves through global manufacturing and instantly inflating prices for countless American consumers and businesses reliant on Chinese components.
- India: Collateral Damage & Targeted Bullying:While the 60% targets China, the proposed 10% universal tariff is a direct hit on India and other Asian exporters. India, a rising economic power with a significant trade relationship with the US, faces tariffs on key exports like textiles, gems, jewelry, pharmaceuticals, and machinery. This comes on top of Trump’s history of bullying India:
- Revoking GSP Status:In 2019, Trump abruptly removed India from the Generalized System of Preferences (GSP), which allowed duty-free entry for thousands of Indian products, citing insufficient market access – a move seen as punitive and damaging to small Indian businesses.
- The CAATSA Hypocrisy on Russian Energy:This bullying reached peak hypocrisy regarding India’s purchase of Russian oil after the Ukraine invasion. While Trump wasn’t President during the Ukraine war, the threat of sanctions under CAATSA (Countering America’s Adversaries Through Sanctions Act) became a tool of pressure. The US demanded India stop buying discounted Russian oil, crucial for its energy security and inflation control. This demand rang hollow while European NATO allies (like Germany, France, Italy) dramatically increased purchases of Russian LNG and pipeline gas for months after the invasion, and the US itself continued (and even slightly increased in 2022) imports of Russian uranium – a critical component for nuclear power plants. The US stance reeked of a double standard: expecting India, heavily reliant on imports and with far less economic resilience than the EU or US, to bear a cost the West itself was unwilling to shoulder fully. Trump allies frequently echoed this hypocritical pressure.
The Boomerang Effect: How “Tariff Terrorism” Wounds America
Trump’s trade wars are not surgical strikes; they are cluster bombs that inevitably inflict friendly fire on the US economy:
- Inflation Tsunami:Tariffs are taxes paid by US importers, overwhelmingly passed onto US consumers and businesses. The Tax Foundation estimates Trump’s previous tariffs cost the average US household nearly $1,500 annually. A 60% tariff on China and 10% on everyone else would be exponentially worse, fueling rampant inflation just as the Federal Reserve struggles to control it. Everyday goods – from electronics and clothing to bicycles and furniture – would skyrocket in price.
- Supply Chain Carnage:Global supply chains, still recovering from pandemic shocks, would face another massive disruption. Finding alternative suppliers for the vast volume of goods currently sourced from China and Asia is impossible overnight. This means shortages, delays, and higher costs for US manufacturers, leading to reduced production and potential layoffs.
- Retaliation & Lost Markets:Targeted countries will China will hit US agricultural exports (soybeans, pork) and manufactured goods. India could target US agricultural products, machinery, and technology services. US exporters lose vital markets, harming farmers and businesses across the heartland Trump claims to champion. The Peterson Institute for International Economics (PIIE) found Trump’s first-term tariffs and retaliation cost the US nearly 250,000 jobs.
- Investment Chill:Uncertainty over trade policy stifles investment. Businesses hesitate to expand or build new facilities if they fear sudden tariff walls disrupting their supply chains or export markets. This undermines long-term US economic growth.
The Root Cause: Historical Nature & Global Blindness
Trump’s “Tariff Terrorism” stems from a consistent pattern:
- Zero-Sum Worldview:Trump views trade purely as a win-lose proposition. He fundamentally misunderstands the mutual benefits of complex global supply chains and comparative advantage. In his mind, a trade deficit is always a “loss,” ignoring the consumer benefits and role of the dollar’s reserve status.
- Transactional, Not Strategic:His approach is purely transactional, devoid of broader strategic vision or understanding of alliance dynamics. Bullying allies like India over Russian oil purchases, while ignoring the West’s own actions, erodes trust and damages vital diplomatic relationships crucial for long-term US interests in Asia.
- Ignorance of Interdependence:He displays a startling ignorance of how integrated the global economy is. Slapping massive tariffs on China ignores that many “Chinese” goods contain significant US intellectual property and components; hurting them hurts US companies too.
- “America First” Isolationism:His policies are rooted in a simplistic, isolationist “America First” doctrine that rejects multilateral institutions (like the WTO, which he crippled by blocking judge appointments) and cooperative solutions. Tariffs are his unilateral weapon of choice.
- Contradictory & Unpredictable:His trade policies are often contradictory and driven by impulse or political theater rather than consistent economic principles, creating damaging uncertainty.
“Trump’s Tariff Terrorism” is more than just aggressive trade policy; it’s an economic strategy fundamentally flawed by ignorance, hypocrisy, and a dangerous disregard for consequences. Bullying India and other Asian nations with blanket tariffs and hypocritical demands ignores the realities of global interdependence and the vital role these partnerships play. Most critically, it ignores the undeniable truth: these tariffs are taxes on American consumers and businesses. They will ignite inflation, disrupt supply chains, trigger job-killing retaliation, and stifle investment. While aiming to punish others, Trump’s tariff blitzkrieg is ultimately an act of economic self-sabotage, threatening to wound the very American workers and economy he claims to defend. The world, and America itself, cannot afford another round of this destructive and misguided “terrorism.”