Dr. Jaishankar’s comments underscored the shifting dynamics in global trade, where economic policies, particularly those driven by Washington’s ‘America First’ approach, have raised tensions. The US administration’s aggressive stance on tariffs has prompted countries across the globe to reconsider their trade relations with Washington, often under duress.
The latest tariffs, imposed on steel and aluminum imports from several countries, reflect Trump’s broader strategy of leveraging trade barriers as a tool to recalibrate global trade norms in favour of US interests. In his address, Dr. Jaishankar stressed the importance of a world order that prioritises equal participation and respect for the sovereignty of all nations, rather than one that is steered by a select few powers.
While Washington has often justified its protectionist measures as necessary to safeguard national industries and reduce trade imbalances, critics argue that the tactic undermines the principles of free trade and multilateralism. Dr. Jaishankar’s advocacy for a fairer global system resonates with nations that have felt the brunt of the tariffs, which include major trade partners such as China, the European Union, and several developing economies.
In recent months, countries including India, Brazil, and Japan have voiced opposition to the unilateral nature of the US tariffs. Many see the imposition of trade barriers as a form of economic coercion, forcing countries to concede to US demands under the threat of punitive duties. Trump’s approach, according to some analysts, has sparked fears of a new era of trade protectionism that could undermine decades of progress towards a more integrated global economy.
The impact of Trump’s tariff strategy extends beyond just trade flows. The ripple effects have been felt across financial markets, with uncertainties over trade relations contributing to market volatility. Moreover, nations caught in the crossfire are increasingly looking to diversify their economic partnerships, seeking new avenues for growth outside of the US-dominated trade sphere.
As the global trade landscape continues to shift, the role of multilateral institutions such as the World Trade Organization has come under scrutiny. Dr. Jaishankar’s call for a multipolar world order is, in part, a critique of the limitations of these institutions, which, according to some, have failed to curb the rise of protectionist policies. This is particularly evident in the ongoing disputes within the WTO, where the US has blocked the appointment of judges to its dispute resolution panel, further hampering the organisation’s ability to function effectively.
In this context, Dr. Jaishankar’s remarks align with the growing sentiment among emerging economies that the current global trade order needs to evolve to reflect the changing realities of the 21st century. Countries such as China, India, and Brazil have increasingly challenged the status quo, advocating for reforms in global trade institutions to ensure a more balanced and inclusive system.
Trade negotiations between the US and other global powers have become increasingly complex, as nations seek to protect their domestic industries while managing relations with Washington. India, for instance, has faced challenges in its trade negotiations with the US, particularly concerning tariffs on agricultural products and information technology services. While India has sought to resolve these issues through diplomatic channels, Trump’s administration has shown little inclination to back down, insisting that the US will not be treated as a “dumping ground” for foreign goods.