Tariffs, subsidies and double standards: How the US hurts India

By Bharat Dogra 

The tariff policies of the Trump administration have been marked by arbitrariness and unfairness. Nowhere is this more evident than in its treatment of countries such as India and Brazil. The calculations behind the tariffs imposed are devoid of scientific basis or economic logic. In fact, in the case of India and Brazil, the reasoning borders on the bizarre.

India has been singled out for purchasing Russian oil—an unjustified intrusion into the trade sovereignty and economic decision-making of a friendly nation. This move has been further linked, absurdly, to the prolongation of the Ukraine war. Yet, if we look closely at the long history of US involvement in Ukraine—from 2014 to 2025—it is clear that American policies have been among the biggest contributors to the continuation and escalation of the conflict, often at the cost of sacrificing more and more Ukrainian lives in the pursuit of weakening Russia.

The double standards of the US position are exposed by data reported in The Times of India (August 7, 2025). A Finland-based think tank noted: “European Union countries account for 23% of Russia’s revenues from fossil fuel exports against India’s 13% since the beginning of the Ukraine conflict, while G7+ tankers are currently transporting more than half of those barrels.” Clearly, if oil purchases are to be condemned, the US should first look at its own allies.

The distortion in US trade discourse extends beyond energy to food and agriculture. It consistently disregards the vital concerns of Global South nations, which must prioritize food security, sovereignty, and farmers’ livelihoods. Unlike the US, where agriculture sustains only a small share of the population, in India the livelihoods of a majority remain tied to farming and allied activities. For the poor to access food, the government must procure at remunerative prices from farmers and distribute it at affordable rates.

Global agricultural prices are already skewed because rich countries, especially the US and EU, provide massive subsidies to their farmers and agribusinesses. These subsidies allow them to export at artificially low prices, devastating small producers in developing nations. What President Trump demands—breaking open Global South markets and slashing tariffs—is tantamount to asking these countries to jeopardize their food security and rural livelihoods for the sake of US agribusiness interests. To surrender meekly to such demands would be a betrayal of the sacrifices made during national freedom struggles.

Trump portrays the US as the aggrieved party, but in reality it is countries like India that have suffered from the harmful practices of US and Western agribusiness. Companies now facing lawsuits in America for health hazards caused by their technologies are simultaneously pushing to expand aggressively in India.

The unfairness of the global trade system has long been documented. The UNDP’s Human Development Report on international trade highlighted the highly regressive nature of agricultural subsidies in rich nations: “Rich countries spend over $1 billion a year as aid to developing country agriculture and just under $1 billion a day supporting their own agricultural systems.” These subsidies distort markets, destroy livelihoods in the Global South, and disproportionately benefit large agribusinesses in the North.

Examples abound. US cotton farmers once received subsidies equal to the market value of their crop, enabling them to dominate world markets while increasing poverty in African nations like Benin from 37% to 59%. Similarly, American rice grown at $415 per tonne was exported at $274 per tonne, wiping out rice farmers in Ghana and Haiti. In the European Union, sugar was sold at four times the world market price, creating a massive surplus that was dumped—again with subsidies—onto developing country markets, crippling local farmers and small processors.

Oxfam’s study Rigged Rules and Double Standards showed that the US and EU routinely exported farm products at prices over one-third below production costs, devastating farming communities across the Global South. This is the true face of “free trade”—but it is conveniently ignored in Washington’s rhetoric.

The Trump administration seems to believe that by shouting loudly and threatening others, it can turn falsehood into fact. But the reality is starkly different: the global trade system is rigged in favor of the wealthy, and tariff hikes against India are yet another expression of this inequity. India and other developing nations must remain firm in defending their food security, farmers’ livelihoods, and economic sovereignty against these arbitrary demands.

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Bharat Dogra is Honorary Convener of the Campaign to Save Earth Now. His recent books include A Day in 2071, Planet in Peril, Protecting Earth for Children, and Man Over Machine