Donald Trump’s inaugural speech is bad news for the world and India. In effect, he said America First and to hell with the rest. He promised to make the rest pay to Make America Great Again (MAGA).
Abandoning the historical claim of the US to be leader of the free world, he said this had meant America paid for the security of others. He would now make others pay America for their security. This puts NATO partners on notice.
He announced the creation of a Department of External Revenue. This would collect high tariffs from imports to help build America. No longer, he said, would America cut tariffs to help others prosper, he would force others to pay to make America prosper. This portends an era of high tariffs, retaliation from others, and trade wars. That will hit world trade and growth everywhere, including in India. He promised to “Make in America and Hire in America”. That will hit Indian H-1B visa seekers and disrupt dollar remittances from the US to India.
This article was originally published by The Economic Times on Jan 22, 2025.
