US economic imperialism: Why Treating Trade Talks as Business-Only Is a Dangerous Mistake
Treating the trade talks with US President Donald Trump as merely a trade negotiation would be a grave mistake on India’s part. The Indian “concede to America lobby,” which is remarkably ideologically powerful in elite circles, is wildly misjudging the current situation. They begin with self-evident truths. America and India can work together to great effect. India will require crucial economic reform domestically. Apart from that, we must have to accept that a capitalist reset is taking place and that we will need to adapt to it. Take a look at how many nations are contending for a deal. We do not wish to be left out.
Capitalism Is Being Reset—But Not in India’s Favor
Yet, these clichés obscure the moment’s most amazing aspect: It is a very imperial moment. Trump is doing more than just redefining capitalism. Countries like India could handle it and even should make wise concessions to allow it if the goal of the reset of capitalism was protectionism for the sake of industrial policy, re-embedding capitalism in new social relations favorable to labor, and controlling immigration. Trump, meanwhile, is calling for a whole different reset. Rushing into enabling it without opposition would be a stupid move.
US economic imperialism: Trump’s Demands Echo 19th-century colonial Tactics
Take a look at this thought exercise. Let’s say a strong nation wishes to attain a bilateral trade balance and implement tariffs. Furthermore, suppose that the tariffs were not reciprocal. It was quite unrealistic for the dominant nation to claim that the rest of the world had taken advantage of it. It is now looking to counter the previous trend. How? via the levying of arbitrary tariffs. Like an imperial tariff system that dates from the 19th century, this power is asking that everyone reduce their rates to zero while retaining its tariffs in place. In addition, this position of authority forces you into purchasing certain products it wants to market, as opposed to taking part in a give-and-take.
This government wants you to reform your entire agricultural policy, yet it holds the right to its industrial policy and ill-advised agricultural subsidies. In addition, suppose that this power ceases to stick to the game’s rules and instead keeps on offering favors and exemptions at will. Take into account further that this authority is the primary obstacle to confronting one of the most crucial shifts that humanity must cope with—climate change—and that it has no interest in doing so. It aims for an economy driven by fossil fuels on steroids.
Added to that, imagine that this power is constantly aiming to take down regulations that are tenably acceptable in each country. Contrary to giving up on them, it urges that technology be regulated and material controlled in line with its core values. Imagine further that this power would not think twice about using its military strength to pursue extractive mercantilism. Furthermore, imagine that this power no longer believes that its monetary system’s reputation gives it advantages. It aims to maintain the privileged status of its currency by attempting to compel others through tariffs rather than by enhancing the appeal of its institutions. It is currently applying additional threats to uphold its huge privilege.
Adding to this fragile combo, it pushes cryptocurrency, which is the most futile and adverse type of speculation from a developmental point of view. Also, it creates a framework that directly benefits the rulers. By simply stating that anyone who shares negative reports on the economy would face implications, it further diminishes the veracity of the international system.
US economic imperialism: A Global Order That Punishes Rule of Law and Democracy
Even so, its objectives are more determined. It often interferes in the affairs of different countries in the most unfavorable way conceivable. Despite its claims to avoid encouraging democracy, it does exactly the opposite: it conflicts with other nations’ rule of law practices. It penalizes one nation unjustly only for affirming the rule of law and upholding its democracy from those who were planning a coup. Every global entity that could provide global public goods is crushed.
Even worse, it punishes and fines foreign officials who simply carry out their duties. Every nation has the right to control immigration and even to impose restrictions on its borders. Yet, this power dictates that the process’s apparent force and capricious nature need to convey a message. Its capitalist framework is not a complete makeover. Rather, it is the result of the previous model’s most oligarchic and deal-based inclinations.
US economic imperialism: Weaponized Trade and a Coercive Foreign Policy
In addition, imagine that this system—rather than just the leader who represents it—becomes used to a new material and symbolic tributary system: world leaders coming in, arguing for agreements, and bowing to embarrassment. Imagine further that one of the most awful moral crises of the twenty-first century is being carried out with the help of this power, and that it is unwilling to stop it.
In addition to not wanting to stop it, it is punishing individuals worldwide who could be affected and incensed by this tragedy. Every nation aspires to progress. Imagine, however, that this nation wishes to maintain its dominance, even if it means using force. Furthermore, picture this nation treating its traditional allies like dirt. It emanates hatred for them. It is impossible to form even an alliance with this power. It will only take vassals. What would the name of such a nation be? Imperialism is the only term for it.
The notion that we must be cautious in using this word is surprising. Furthermore, it is erroneous to assume that this is primarily about suppressing one leader’s ego. This imperial project has no rivals within the system. Colonialism is a trait of all great powers. Weaker powers must always adapt. That is an issue for another time. But Donald Trump exhibits imperialism. Restoring capitalism does not support stronger social protection, reducing environmental risk, or even a logical industrial policy.
If what is needed is a reset, it will lead to a more coercive domestic political system, an accelerated oligarchy, more discretion, a more speculative spiral for capitalism, and direct coercion of others. This approach is working, as our pro-America lobby is vehemently declaring. To put it as gently as possible, pro-Trump Indians are proclaiming an early triumph on his behalf, but the jury is still out on that one. In any event, it is apparent what rewards the rest of the globe will receive.
A Wake-Up Call: The Global Cost of Submitting to Modern Imperialism
At their finest, America and India should represent common political ideals such as open society, constitutionalism, and liberty zones. However, it is an insult to India’s honor and interests to submit to this new American colonial state under the guise of reform, realism, or capitalist reset. And the world’s future will be affected greatly as a result.
This article was originally published on August 5, 2025, in The Indian Express under the title “Giving in to the American state is an affront to India’s dignity” and was written by Pratap Bhanu Mehta. Full credit goes to the original author and publication.