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Trade Wars

Archbp Thomas Menamparampil Archbp Thomas Menamparampil
31 Mar 2025

"The Economic Weapon"
As Trump emerges on the world scene with no friend nor foe, no NATO, no UN, no bonds, no relationships, no prior agreements, no respected traditions, no accepted codes…no 'ideals' but only 'deals' (as he himself affirms), one longs to study the various dimensions of what may be described today as "Tariff Terror."

In his book "The Economic Weapon" (Yale University Press, 2022), Nicholas Mulder says that using the economy as a weapon in both war and peaceful times has been too little studied. He considers the Athenian ban on goods from Megara in 432 BC as the first case of economic sanctions. Very few remember even that the World War I blockade by the Allies killed 300-400,000 in Central Europe and 500,000 in the Ottoman Empire.

For Trump, his friends are his foes. European Union is a "foe" established precisely to "hurt US on trade." According to Kevin Kruse, a Princeton University historian, this is a shabby presentation of facts based on a serious misreading of history. America rose on the world scene in the twentieth century, strongly stimulated by Europe's planned commercial relationship with her. However, realism is not Trump's strong point!

Panama and Greenland are invited to join the US for their own good, and Canada is threatened by a 50% tariff. While Ukraine's rare minerals will strengthen Trump's belt, the waters of the Gaza Riviera will wash his feet! Is Trump following the 'beggar-thy-neighbour' policy or 'Making America Grieve Again' (MAGA) strategy?

Times of India, March 7, 2025 editorial read thus, "Cowboy Trump shoots first and asks questions afterwards…Niels Bohr says, never draw your gun first. Because drawing takes longer than responding… So the one who draws first is usually a loser." Canada is quick to respond, and the EU and China are not far behind. India, of course, prefers a more philosophic approach.

In Nicholas Mulder's view, during the inter-war period, a "fading Imperial Britain" was in the company of an "IMMATURE" United States. That explains the blunders that followed.

Economic Sanctions Lead to Negative Consequences
Woodrow Wilson considered "sanctions more tremendous than war," and a "terrible instrument" in war, too much of a tool of European imperialism. It can lead to disastrous consequences. In fact, excessive pressure compelled Italy, Germany and Japan to strengthen their autarkies and expand their territories given raw materials: Italy to Ethiopia, Germany to East Europe, Japan to Indonesia, Burma, and India. Thus, sanctions stirred a greater desire for expansion, leading to World War II.

The blockade of Russia proved to be a "blow upon blow." Under sanctions, children wore clothes of sacks; in hospitals, they were covered in paper. Referring to sanctions on Germany Arnold-Forster boasted: "We succeeded in bringing death through privation to some 760,000 people in Germany alone" (in reality between 300-400,000)…. We brought the enemy to his knees" (Mulder, 81).

Autarkies, in deep trouble, learnt from each other. Likes admire likes even today. Trump speaks of Putin respectfully: "I have a lot of respect for him." Trump seems to be prompting Europe to follow the illiberal government style of Putin, Xi, and Kim Jong Un.

Citizens Are Responsible
Critics are inclined to point their finger at Trump and other autocrats. However, those who brought them to power and remain unthinking followers, especially their flatterers, are equally responsible. In fact, they are more accountable, with their blind adherence to White Supremacy ideology and their indifference to other issues with vast world consequences. The Republicans are bringing America under a "command and control" party like that of Russia, immensely different from what the Founding Fathers had envisaged.

Majoritarians under RSS-BJP leadership are doing the same service to India, uprooting her from her ancient egalitarian traditions and values implanted into the Constitution by the Founding Fathers. The top leader's partisan policies are defended by an army of paid digital servants and top leaders in the Cabinet. Amit Shah swears that the situation in Kashmir and the Northeast has made immense progress under the leadership of Modiji. Kiren Rijiju rushes to his defence in Manipur affairs and about diverse tribal grievances.

The top leader cannot err. This is the measure of infallibility that Mussolini and Hitler were given in their lifetime. An objective evaluation of social or political situations is hardly available in the media, while Kumbh Mela and cow care are given lavish coverage.

The Weak Shall Remain Weak, Poor Poor
As the world market is fumbling under Trump's freak strategies, people are searching for markets for their products. One would wish that World Economists had sought to give Africans sturdy Purchasing Power to sell their goods on that vast continent. Similarly, one would wish that Indian lower classes were given the ability to purchase these goods so that they could profit from the products of advanced countries. But, as of now, the poor, minorities and lower castes are doomed to their destiny.

Suvendu Adhikari, the BJP Leader of the Opposition in the West Bengal Assembly, swore that, if they came to power, they would throw out the Muslim MLAS from the House. There have been protests, but in the present climate, protests against the Majoritarians are claimed as richly deserved recognition. Take another instance. A UP MLA, Ketakee Singh, wants a Muslim wing in the proposed Medical College to be built at Ballia. The minorities do not belong; they are to be excluded; they only need to be taught a lesson that they will remember for all time. The anti-Muslim attitude in India may be compared only to the antisemitism of the Nazis.

A man is killed in Haryana on suspicion of smuggling cows. Vigilantes had attacked the truck driver and conductor with lathis, hammers and swords. For Bajrang Dal, this is the height of heroism. They were hailed by the RSS elite. A similar incident took place at Faridabad. Such events are reported every day in different parts of India, especially in the North. Recently, MP police thrashed and paraded two men accused of cow slaughter. VHP and Bajrang Dal rushed in to congratulate them. Madhya Pradesh threatens the death of those who convert.

Mayawati, who ought to be the defender of the Dalits, has allied herself with the BJP. That is how all Dalit-tribal resistance to unfairness ends. In the meantime, the number of billionaires in India rose to 191. Inequality rises.

Remedies Come Too Late, Remain Ineffective 
As the Judiciary in America is seeking to defend the thousands who lost their jobs, Trump congratulates himself for the 'astronomical achievements' of his first 50 days. "The price of eggs has come down," he cries. Forget about people who have lost their livelihood; medical centres and universities and institutions remain unassisted, the aged and sick struggling for existence. While Trump seems to have resumed military assistance to Ukraine, his motives remain suspect. Critics call his demand for Ukraine's critical minerals a mafia deal, a colonial plunder, an imperialistic loot, just like the ethnic cleansing of Palestine that he threatens.

In an undemocratic order, the top leader's person is 'sacred.' Cases were filed against Kejriwal when he questioned the degree of the Prime Minister. Ultimately, Delhi University has expressed its readiness to show his degree to the court, not anyone else. A High Court has asked a Tamil magazine to remove a cartoon of Modiji. The Prime Minister must remain beyond criticism!

The Supreme Court is correct in seeking regulatory steps against online 'vulgarity' and 'filthy language.' But be sure, political cartoons do not belong to this category. They can be classified as political thought-provokers. The Supreme Court should encourage 'healthy debate' on matters of public interest and issues of morality and decency. It insists that the police are yet to understand the 'right to free speech'.

When thousands of Indians were sent back from America, arms chained, Indian authorities could have asked themselves how they could prevent such humiliating experiences. Belated investigations revealed that some 2000 agents were regularly smuggling Gujaratis and others to the US through Canada. Applicants from Modiji's 'model state' get themselves admitted to Canadian colleges and quietly make their way into the US. A commission of 55-60 lakh rupees is collected from each. Instead of assailing political critics, the Enforcement Directorate could have prevented such illegal migrations that embarrassed the nation.

Our Destiny is Shaped by Us, Inconsistency Does not Help
During his campaign in Germany, Napoleon had a conversation with philosopher Johann Wolfgang von Goethe. Napoleon argued that in earlier times, Tragedies were attributed to Destiny, but in the modern era, Tragedies are the result of Policy, not Fate. He possibly meant to say that the German humiliation was a part of his own policy. Whether we agree with Napoleon or not, we are certain there are a number of tragedies, humiliations, deprivation, and impoverishment that can be addressed through wise policies. Citizens must be active.

Unfortunately, there is too little consistency in the public pronouncements of world leadership today. With Trump, many say, the Post-Literacy Age has been reached. He threatens, then delays, postpones, rethinks, changes…threatens again. He fails to see that trade wars are counter-productive. Antonio Guterres, UN Secretary-General, pleads, "When we enter a trade war, I believe all will lose."

No one listens. EU threatens to strike the US back with tariffs. Trump responded with a 200% tariff on EU alcohol. Mind you, the US economy had been growing at 2.3%. Canada responds with warnings, China even more seriously. Immersed in anxiety, Wang Yi invited India to close collaboration with China, but in total inconsistency, raised the defence budget by 7.25% to $245 billion. No one seems to have a convincing power.

Do our leaders in India enjoy convincing power in Kashmir, Manipur, or South India? Chief Minister Stalin calls the present National Education Policy a part of the Hindutva strategy to promote Hindi, not to promote education. Siddaramaiah agrees with him.

Similarly, there will be no solution to Manipur's problems as long as the BJP's first concern is Hindutva ideology and the last concern is the Manipur people's welfare. No one takes the token surrender of weapons by rebels seriously. Everyone knows that the better weapons are preserved for the next round of clashes. The heart must speak to the heart. Sincerity must address sincerity.

While India is busy seeking to inflate its global image, it ruins it from within. The Prime Minister, who goes around the world hugging people, shuns Manipur like an unwanted alien.

Good Sense Prevails in the End
Evaluation comes after every major event. After the Kumbh Mela, there was an article on the internet on why people were leaving religion in India in large numbers. The author says that reason spontaneously rejects what is irrational in religious traditions, whatever is superstitious, obscurantist, what takes society to an archaic age… e.g. remuneration of ignorant, self-interested gurus and godmen (in Assam, the secular government pays 1,500 rupees to each bhakat in Sattras), anti-cow-slaughter fanaticism.

Good sense will tell people that religion is about the intelligent understanding of reality in a comprehensive manner, energy for commitment to the common welfare, a vision for humanity in the most inclusive way, and loyalty to its long-term good in the fullest measure. In day-to-day life, plain Good Sense will tell people what has to be corrected about their notion of religion.

India's philosophic instinct urges us to sit back calmly and think about the best solution. After all, we are not in a disadvantaged position. We have a trade surplus with the US of $36.8 billion. In fact, India's deficit trade with China is much higher. Rather than react to US tariffs, India should elicit far-sighted collaboration, e.g., to prevent Trump from giving India stale weapons. Projecting a big image is less important than concluding a wise deal. What really counts is that Good Sense should prevail, as Buddha used to believe.

Have courage, then. Goethe would say: "Property lost, something lost. Honour lost, much lost. Courage lost, everything lost".

Good sense preserved, everything saved.

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