Dr. Asis Mistry
As Donald Trump continues
to wreak havoc on the American economy, the silence of Republican leaders and
Wall Street executives is deafening — and dangerous, not just for the United
States, but for the entire global economy, India included.
Trump’s impulsive trade
wars, his attack on independent institutions like the U.S. Federal Reserve, and
his destabilising rhetoric on global alliances are not just domestic American
matters. In today's interconnected world, America’s economic health is closely
tied to India's aspirations for growth, stability, and global leadership. Yet
those with the most to lose inside America — its corporate chiefs and political
guardians — remain largely mum, hoping futilely that private persuasion will
work where public accountability is urgently needed.
The pattern is clear:
American businesses, despite seeing their stock prices tumble and their
international competitiveness wane, are choosing silence. Republican lawmakers,
even as Trump’s tariffs hurt their own rural and working-class voters, remain
subservient. Trade groups, which never hesitated to criticise past
administrations, now offer little more than polite platitudes.
This matters for India
because we, too, are part of the intricate global supply chains Trump is
disrupting. Our IT exports, pharmaceutical supplies, and manufacturing sectors
are all deeply linked to U.S. markets. Rising protectionism and unpredictable tariffs
not only rattle global investor confidence but also slow down India's exports
and investment inflows. When American farmers lose international customers due
to retaliatory tariffs, it impacts global food prices, a delicate issue for
India’s inflation management. When American tech companies face uncertainty,
India's IT and service sectors feel the tremors.
There’s a belief among
American CEOs that they can whisper sense into Trump's ear behind closed doors.
But reality shows otherwise. Temporary concessions — like exemptions for
iPhones or vague promises about tariff reductions — are short-lived. The underlying
trajectory remains dangerous: an America moving away from a rules-based order
towards erratic, personalised decision-making.
This week, another
"leak" suggested Trump might lower China tariffs from 145% to a
still-draconian 50%. Markets briefly celebrated, hoping for a cooling-off. But
hope, especially when based on anonymous sources and "fake news"
accusations from Beijing, is not a strategy. A 50% tariff is hardly a victory —
it is an economic noose, tightened slightly less.
Trump’s threats against
the U.S. Federal Reserve are even more alarming. His pressure to slash interest
rates to support short-term political gains risks undermining the Fed’s
long-cherished independence — the same independence that has allowed America to
maintain monetary stability for decades. India, striving to strengthen its institutional
credibility with independent bodies like the RBI, watches with concern. When
politicians control monetary policy, the results are often catastrophic — think
Venezuela or Turkey.
Yet, public pushback from
within America remains feeble. An occasional senator mumbles about the need for
an "independent" Fed, only to quickly walk it back with jokes about
"hot cocoa" and private hugs. It’s not the kind of principled
leadership the world expects from a country that has long projected itself as
the steward of democracy and free enterprise.
This abdication of
leadership poses risks and lessons for India and the broader developing world.
We cannot afford to rely on a volatile U.S. to underpin global economic
stability. We must strengthen South-South trade linkages, diversify our export
markets, invest in homegrown innovation, and advocate for a truly multipolar
world order. At the same time, India must remain vocal about defending
democratic norms and institutional independence — lessons we must internalise
at home too.
American business and
political elites may think they are buying time with their silence. They are
not. They are gambling not just with their future, but with the future of
countries like India that have, for long, considered America a partner in
prosperity.
Silence is complicity.
And in today’s world, complicity comes at a global cost.
@Author is Assistant Professor of Political Science at
the University of Calcutta
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