STRONG, intelligent, tough… the flow of encomiums from United States President Mr. Donald Trump for Russian President Mr. Vladmir Putin and Chinese premier Mr. Xi Jinping comes with a heavy coat of hard realisation. The businessman in Mr. Trump has taken over the POTUS. The high praise for the two top leaders is plain toning down of his wanton belligerence which found tough resistance in China and Russia in America’s trade war. “These are people not to be toyed with. These are people you have to take very seriously,” Mr. Trump has come out hailing the tough character of the two world leaders even as his tariff decision has come up for hearing by the US Supreme Court. The toning down of rhetoric by Mr. Trump might have a way out for the other countries, too, which are burdened with high tariffs.
The last week was full of indications from Mr. Trump that the US will climb down from its hard stand while dealing with top powers. He had a bilateral with Mr. Jinping in Busan and came up with the agreement of a one-year truce in which China will continue rare earth export to the US and America will relax limits on technology exports apart from other concessions. The agreement came after the hard truth of meeting an equal had hit the US in the face after the initial bluster of breaking the back of nations with the tariff bomb. The meltdown for Mr. Trump was so severe that he had to appease Mr. Jinping with the proposal of a G2 grouping where the two superpowers would dominate the world with their riches. Despite the super-cold response from Mr. Jinping, the US President went ahead in announcing China as an equal partner in the room. Sequel of the same episode is now playing with the praise for Mr. Jinping as well as Mr. Putin.
The fact is, odds are shortening for Mr. Trump in the trade war launched as a “right of America”. The plot is slowly unravelling for the United States.
With no Congressional input on the whimsical sanctions imposed on nations and even close allies like India, things are gradually starting to go terribly wrong for the American economy and national security. It is a bitter pill that Mr. Trump has no option other than to swallow. And with the US apex court breathing down his neck, the President has taken the other way out by keeping his top international rivals in good humour.
The fact remains that Mr. Trump has been unable to break ice with both Mr. Jinping and Mr. Putin. His threats of using economic heft to test their resolve have been met with equal pushback from both the countries. China has come out as a belligerent opponent, matching the US tariffs with equal penalties on US goods entering the country. Russia never showed any effect of the sanctions imposed by the US as well as the European countries in wake of the war with Ukraine.
Their stronghold on some critical sectors carries enough leverage to deal with all the emergencies pushed by Mr. Trump.
The Trump climbdown has enough lessons for India. New Delhi has definitely held strong in face of the heavy US tariffs. The smart play by Prime Minister Mr. Narendra Modi while dealing with the whims of the US President has helped India maintain its terms in the ongoing trade deal negotiations. But there is also a message for India in the way Mr. Trump has come around to deal with China and Russia. It shows that a nation’s influence is determined by its assets and leverages. India has its task cut out. It must build strength internally by speeding up reforms in technology, education, skill development and most importantly manufacturing in critical sectors. Holding on to innate strengths can come only through capacity-building and going back to natural riches. India has embarked on the rare earth challenge by exploring many potential zones. The effort needs to be doubled down with full vigour, for, the future is tech-driven and its core components hold the key to prosperity for India.