Skip to main content

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.
---
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

Comments

TRENDING

Grueling summer ahead: Cuttack’s alarming health trends and what they mean for Odisha

By Sudhansu R Das  The preparation to face the summer should begin early in Odisha. People in the state endure long, grueling summer months starting from mid-February and extending until the end of October. This prolonged heat adversely affects productivity, causes deaths and diseases, and impacts agriculture, tourism and the unorganized sector. The social, economic and cultural life of the state remains severely disrupted during the peak heat months.

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman*  The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra   There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat*  The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Why India must urgently strengthen its policies for an ageing population

By Bharat Dogra   A quiet but far-reaching demographic transformation is reshaping much of the world. As life expectancy rises and birth rates fall, societies are witnessing a rapid increase in the proportion of older people. This shift has profound implications for public policy, and the need to strengthen frameworks for healthy and secure ageing has never been more urgent. India is among the countries where these pressures will intensify most sharply in the coming decades.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor*  Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

School job scam and the future of university degree holders in West Bengal

By Harasankar Adhikari  The school recruitment controversy in West Bengal has emerged as one of the most serious governance challenges in recent years, raising concerns about transparency, institutional accountability, and the broader impact on society. Allegations that school jobs were obtained through irregular means have led to prolonged legal scrutiny, involving both the Calcutta High Court and the Supreme Court of India. In one instance, a panel for high school teacher recruitment was ultimately cancelled after several years of service, following extended judicial proceedings and debate.

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...