Bharat must thank the President of the USA, Donald J Trump, for redefining the tariff calculation. For the uninitiated, tariff is a tax that has to be paid on goods coming into a country or being imported. Typically, they are a percentage of a product’s value. Trump believes that the new “reciprocal tariff” regime will boost the US economy and protect jobs.
“Reciprocal would mean they were based on what countries already charge the US in the form of existing tariffs, plus non-tariff barriers such as regulations. However, this is not what has happened for all of the countries on the list. Instead, the tariff rate was calculated on the basis that it would eliminate the US’s goods trade deficit with each country.” (What are tariffs and why is Trump using them? Jennifer Clarke, https://www.bbc.com/news/articles/cn93e12rypgo). Clearly Donald J Trump has kept the interest of USA at the top. And no one should complain.
The business world which loves throwing jargons like “Disruption” is upset with the same. Though some of the business gurus and the business leaders are talking of VUCA (volatile, uncertain, complex and ambiguous) world for at least a decade are looking surprisingly, shocked. Maybe they did not expect Donald J Trump to win or impose the new tariffs. Any way Bharat should be happy with the clearly defined “reciprocal tariff”.
Ideally Bharat should have taken the initiative to disrupt the tariff long back. Yes, it is a fact that the retaliatory tariff may have impacted Bharat hard. Now since the initiative to redefine the world of tariff has been taken by President Trump, Bharat must encash the opportunity. The world is mentally prepared to new tariffs. Bharat must make the most out of it.
Bharat needs to move to reciprocal tariff. The countries which supply weapons to Pakistan should pay a tariff of 100 percent. Bharat has been not only been losing on income from J&K, but has to invest money in maintaining military. Over and above this Bharat suffers almost daily losses in the form of priceless human life, both military and civilian.
In the world of Geo Economics, economics is another tool to fight war. The European countries instead of sending troops to Ukraine, opted for economic sanctions on Russia. Economics or trade was always weaponized but nothing like today’s time.
Bharat also used it (and rightfully so) to corner terror state Pakistan by pushing for it to get listed in the grey list of Financial Action Task Force (FATF). Bharat did put restriction on companies operating out of China. Now Bharat must take it to next level and on the path shown by Donald J Trump.
Bharat needs to levy a tariff on the companies that operate both in Pakistan and Bharat. The companies need to be told very clearly, they can either do business in Pakistan or Bharat. In case they want to do business in both the countries they must pay a tariff of 100 percent or more. Because these countries are directly or indirectly funding terror activity of Pakistan against Bharat and there has to be a price for it.
Prime Minister Narendra Modi led government has demonstrated to the world that Bharat can also play the game of Geo-politics. Now it is time to redefine “Geo-economics”. Bharat must implement “Terror Tariff” on countries doing business with countries like Pakistan and Bangladesh.
“Terror Tariff” will not hurt Bhartiya consumers like the “Reciprocal Tariff”. Countries and companies must make a choice between a growing economy of Bharat and shrinking economy of Pakistan and Bangladesh. Notably, “Terror Tariff” will stamp Bharat’s “Strategic Autonomy” in the new global order and will keep minnows in the subcontinent under check.
