Editorial: If Canada can take a stand against Trump's Tariffs, why can't India?

Canadian PM Carney calls Trump's auto tariffs 'direct attack' on his country

 

Canada says Trump's tariffs 'A Direct Attack' on the country

Canadian Prime Minister Mark Carney sharply denounced U.S. President Donald Trump’s imposition of a 25 percent tariff on auto imports as a “direct attack” on Canada. The measure threatens a sector with Canadian employees numbering in the hundreds of thousands and would have significant economic effects. Carney, who is temporarily leaving his election campaign to address the crisis, promised a CA$2 billion strategic response fund to benefit the affected employees. He also emphasized the fact that the tariffs would be against the consumers in America and quoted the weakening in U.S. consumer confidence. Trump’s escalating trade war, including the initial imposition of Canadian steel and aluminum tariffs, caused concern about overall economic uncertainty. Opposition leader Pierre Poilievre asked Trump to reconsider his action, and Carney said he would be willing to sit down and negotiate but insisted on defending Canada’s interests.

 

Editorial: If Canada can take a stand against Trump's Tariffs, why can't India?

 

Indian Silence on Trump’s Tariffs Hurts Its International Reputation

The U.S. President Donald Trump’s imposition of a 25% tariff on imported cars and car parts last week left the global trade community in shock. Canada was quick and unequivocal in its response to the imposition of the tariffs, with Prime Minister Mark Carney labeling the tariffs a “direct attack” on the country’s auto industry. Canada retaliated with firm action by imposing tariffs on $155 billion worth of U.S. goods. The fact that Canada’s response was so firm and forceful suggests the country’s determination to protect its economic interests and stand up for its sovereignty in the global community. In contrast to such initiatives in the United States, the Indian reaction has been quite subdued. Instead of issuing stern condemnations or outlining immediate countermeasures, India followed a cautious approach. The government focused on the decline in tariff and non-tariff barriers to increase trade with the United States. That involves a visible intent to lower automobile import duties but not to zero levels immediately and to explore ways to expand exports and attract U.S. investment.

 

Editorial: If Canada can take a stand against Trump's Tariffs, why can't India?

 

India’s muted response raises important questions about the country’s global positioning. In not standing up and objecting to the U.S. tariffs in the open, the country risks appearing passive and possibly losing leverage in international trade negotiations. Other countries like Canada and the European Union have chosen to confront the U.S. openly and demonstrate the significance they attach to defending their economic interests. Their assertiveness underscores an important principle in international trade: silence is often interpreted to be acceptance. India’s restraint can be a conscious effort not to ratchet up tensions with the United States, given that it would like to take bilateral trade to $500 billion in 2030. The guarded reaction can be interpreted as a sign of India’s lack of assertiveness and can undermine the country’s bargaining power in upcoming trade talks. Besides, not joining the other nations in actively resisting the U.S. tariffs denies India the opportunity to be a part of an international thrust against protectionism and to advocate for fair trade practices.

 

Editorial: If Canada can take a stand against Trump's Tariffs, why can't India?

 

The long-term effect of Indian silence or compliance is concerning. Diplomatic restraint is important, but not taking a stand on significant global economic issues may deny India the influence it wields on the global platform. In order to be a force to be reckoned with in global trade, India must reconcile strategic restraint with assertive advocacy. Being part of global trade disputes with increased vocalness when necessary will not only secure Indian economic interest but will reinforce the role of India as a powerful player in the global economic arena.


 

With inputs from agencies

Image Source: Multiple agencies

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