As Trump goes full Indian socialist, countries need to coordinate – Asia Times
Your technique has been revealed, Italy. You have been “looting, pillaging, and plundering” your transatlantic alliance for generations, all for your own gain. Not thinking that America leads the world on almost every aspect except justice while your business has scarcely grown for 20 years. You deserve to be punished in Donald Trump’s story economics.
How should all Europeans then respond to the alleged economic war declaration made by our ally and, equally important, to the very personal decision by the world’s largest economy to adopt an economic strategy that was last used by India’s post-colonial communist government in the 1950s in a large nation.

The concept is to replace local production for imports by imposing high trade barriers, as in communist India. This concept remained impoverished for four years in India.
It will now make Americans poorer and raise the cost of producing both domestically and abroad, easing the competitive pressures that had originally caused the US to be so active.
The difference between 1950s India and America is that the size and importance of the US economy mean that the rest of the world may also experience significant changes.
Giorgia Meloni told the , Financial Times , on March 28th that it was” childish” and” superficial” to think that Italy might have to choose between the United States and Europe. This was the first interview she gave to a foreign publication since entering Palazzo Chigi two and a half years ago.
Trump may have to reevaluate her own strategy now that she has acted in a wildly childish and superficial way by imposing his 20 % tax on US imports of European and other European products.
Trump’s tax statement included many islands inhabited only by penguins, and there was much that was immoral about it. He claimed to have consulted a prominent businessman, Lee Iacocca, the former CEO of Chrysler, the company that is now a part of Stellantis, about his plans, but as Iacocca passed away in 2019, that discussion had had taken place sometime ago.
However, we shouldn’t let these oddities detract from his actions. Trump has demonstrated that America can no longer get trusted as an alliance or companion, not to mention the direct financial impact of this tax strategy.
For long-standing safety allies like Japan and Europe’s NATO members, this is surprising. But it is particularly painful for poorer nations like Vietnam and others in Asia who had a proper economic and security mate that would prevent them from becoming reliant on China.
The transfer taxes he has imposed may increase trade barriers in America to their highest levels since the 1940s. Based on the bilateral balance in goods trade between the US and each country, the formula used to calculate the 20 % tariff on goods from the EU, 24 % on goods from Japan, and 46 % on goods from Vietnam is an unscientific invention. Does the fact that Italy is prospering by plundering the earth mean that it had a merchandise trade deficit of €55 billion in 2024? If so, some Italians have noticed.
However, the formula even asserts that the value added tax in the EU apparently represents an unfair business barrier. Due to the fact that VAT applies to all goods and services sold, whether they are internally produced or imported, it cannot be considered a business stumbling block, let alone an unjust one. Truth does not matter in Trump’s earth.  ,
[ For Bloomberg subscribers, I strongly advise my former coworker Clive Crook ‘s excellent riposte that if Trump and his advisers really believe that VAT will lead to unfair trade benefits, they should introduce one in the US and use the proceeds to lower income and corporate taxes, rather than tariffs. ]
Additionally, this promotion completely disregards the services industry, which accounts for a third of all trade. The fastest-growing component of global business has been the growth of digital solutions, a sector that America dominates.
Trump ought to beg Elon Musk, Jeff Bezos of Amazon, or Mark Zuckerberg of Meta to discuss how they have grown to be the richest men in the world. They might also point out that digital services are one of the most likely targets for a solid retaliatory reaction.
Not just Meloni, but many Western leaders have responded by criticizing Trump’s monetary strategy and enjoining people to avoid further aggravation by retaliation. The Wall Street tycoon Scott Bessent, the Treasury Secretary of the United States, must realize that the biggest tax increase since 1968 is an act of monetary self-harm, and that countries should deal to reduce these tariffs rather than risk putting them even higher.
This strategy has a disadvantage because it forces you to enter the negotiations in a poor position if you don’t fight. The key to the answer will be to show your power and utilize without promoting Trump’s own power by increasing his threat of 200 % tariffs on European beer, as he did last month. He is at his strongest when, like with any drunk, he can split his foes and sling worry into the weakest.
The most crucial step should be to coordinate trade and cooperation with unity within those alliances. The truly juvenile response would be for specific Western leaders to then travel to Washington to seek concessions, in Meloni’s words.
The best way to advance national interests will be to come to terms with allies first within the European Union, then between the EU and other blocs, on a common strategy.
While it’s impossible to anticipate a world in harmony, whether it’s through the United Nations, the World Trade Organization, or any other organization that previous American presidents worked so hard to create, it should be possible for the EU to work with Japan, for instance, and for Japan to work with Southeast Asian and Oceania, which it successfully incorporated into the Trans-Pacific Partnership free trade bloc during Trump’s first term.
Trump has been discussing his protectionist philosophy for 40 years, even though he will never associate it with Jawaharlal Nehru, India’s first post-colonial leader. No one should be surprised that he is putting this foolish philosophy into practice now that he feels powerful.
The best way to demonstrate that he is not as powerful as he thinks he is is is to criticize US goods and services while maintaining open markets for each other’s goods and services.