In today’s era, when every information in the presence of social media platforms is only at a distance of One Touch, One Tap, in such a situation, people living in small towns of India also have a lot of information about the “Tariff Tandava” launched by US President Donald Trump. As soon as the United States imposed counter tariffs on the imports of almost all countries, the stock markets around the world fell unexpectedly. All major capitals are nervous and there is an unrealistic disappointment that Trump has left the bull in the market without the global business. There is no doubt that this step can be devastating.
But this step, as dangerous and full of problem, is not surprising for those who look carefully for the last three decades. Since the collapse of the Soviet Union, the United States has been leading the agenda of globalization, with the support and encouragement of huge multinational companies. Until that important moment, countries like Germany, Japan and South Korea were greatly benefited by exporting billions of goods annually under their mentor America’s blessings, while they used high tariff walls to keep out American goods.
However, it is not shocking for those who have been looking at globalization for the last 30 years. Since the breakdown of the Soviet Union, the US has promoted globalization with big companies. At that time countries like Germany, Japan and South Korea sold a lot of goods with the help of America. They used to send billions of dollars goods to America, but used to stop them by putting high tariffs on American goods.
People called it a great phase of globalization. American customers found cheap gadgets and cars, and these export countries became rich. But this was not a completely fair trade. Most of the goods were only going towards America.
As long as some countries like Japan and South Korea were doing this, it was easy for the US to face trade deficit and cheaper imports. But when Bill Clinton signed a NAFTA agreement with Canada and Mexico, thousands of American factories and millions of jobs moved to Mexico, where wages were cheap. Supporters of globalization were happy, but ordinary workers of America were angry. His good life was slowly ending, because the factories were closing.
In favor of globalization, used to say that laborers will get other jobs. But there were no jobs that give good earnings. In 1994, Mexico sold goods worth $ 50 billion to the US. By 2024 it increased to $ 551 billion. American customers got cheaper goods, but laborers did not get good jobs.
When China was allowed to join the World Trade Organization, the situation worsened. Large American companies like Nike and Apple started their production in China. Factories in America closed and many cities were deserted.
In 1999, China sold goods worth $ 44 billion to the US. It increased to $ 3577 billion in 2024. America’s trade deficit also increased – $ 34 billion to $ 1200 billion in 2024 in the 1990s. There was a loss of $ 300 billion with China alone. India has a very small part in this business.
These figures cannot last for a long time. Ordinary workers of America are angry with their leaders, who kept praising globalization. It is useless to say to a laborer to buy cheap goods when he gets a wage of $ 10 per hour and has to do two jobs to live.
People were opposing this for the last ten years. Now this anger has emerged as Donald Trump, whatever you can do. Will this start a trade war? Will a gathering come like 1929, when the economy had shrunk a lot? No one knows. May be intelligent people improve the situation. Or global business changes forever. But it is certain that the policy of not accepting no limit of globalization cannot run now. Now the time has come to give its account.