America and Tariff Terrorism: A New Weapon in Global Trade

America and Tariff Terrorism: A New Weapon in Global Trade

Introduction

For decades, the United States has presented itself as the world’s strongest advocate of free trade, globalization and open markets. It has advised developing nations to lower barriers and embrace competition. Yet, when its own domestic industries or political interests are at stake, the same America turns to punitive tariffs, sanctions and protectionist policies. This is what many observers now call “Tariff Terrorism.”

What is Tariff Terrorism?

Tariff terrorism refers to the practice of a powerful nation imposing sudden and steep tariffs on imports from other countries to exert economic or political pressure. Rather than correcting trade imbalances in a fair way, it weaponizes tariffs to coerce or punish.

America’s Double Standard

1. Preaching Free Trade, Practicing Protectionism – The U.S. champions trade liberalization at the WTO, IMF and World Bank, but it shields its domestic industries through high tariffs on steel, aluminum, solar panels, technology goods and farm products.

2. Selective Pressure – Countries with which the U.S. has political disagreements — China, India, Turkey, among others — face higher tariffs. Allies or countries offering strategic advantages often get exemptions.

Impact on India

India has repeatedly faced the brunt of U.S. tariff terrorism:

Additional duties on steel and aluminum exports

Removal of India’s “Generalized System of Preferences” (GSP) status

Non-tariff barriers on pharma, IT services and agricultural goods

These measures increase costs for Indian exporters, reduce competitiveness and create uncertainty in bilateral trade.

A Threat to Global Trade

Tariff terrorism does not harm just one country; it destabilizes the entire global supply chain. Its consequences include:

Intensification of trade wars

Greater pressure on smaller economies

Increased uncertainty for global investors

Higher prices for consumers worldwide

The Role and Limits of the WTO

The World Trade Organization was designed to restrain such unilateral actions. Yet the U.S. has often refused to comply with WTO rulings and even crippled the Appellate Body by blocking judge appointments. This undermines the multilateral system and replaces rules with the “law of the strongest.”

The Way Forward

South–South Cooperation – Developing countries can increase trade among themselves to reduce dependence on the U.S. market.

Strengthening Multilateral Platforms – A stronger and fairer WTO is essential to keep trade rules binding for all nations.

Diversification and Technology Upgrades – Countries like India need to diversify export markets and invest in technology to reduce vulnerability to unilateral tariffs.

Conclusion

Tariff terrorism may serve America’s short-term political interests, but it erodes the foundations of the global trading system. If the U.S. truly believes in free trade and fair competition, it must abandon the use of tariffs as an economic weapon. International trade thrives on cooperation, stability and mutual benefit — not on threats and coercion.