Pragmatic Ways to Combat Trump Tariffs
The recent tariff measures and unilateral actions taken by President Trump represent a direct
threat to India’s economic independence and sovereignty. It is imperative that we stand united in
resisting such coercive tactics and leverage every possible opportunity—both strategic and
economic—to safeguard our national interests.
Outlined below are ten immediate, actionable measures that can be initiated without delay:
- Levy Import Duties on Electronic Transmissions
The WTO’s moratorium on imposing import duties on electronic transmissions—covering digitally
delivered goods and services such as software, music, books, and more—was first agreed in
1998 and extended every 2–3 years. This moratorium is scheduled to end in March 2026.
The United States has been the largest beneficiary, with its technology giants enjoying
monopolistic dominance in various segments and extracting massive volumes of global data.
With the WTO now practically defunct, India can act unilaterally to impose such duties
immediately. The revenue generated should be channelled into public digital infrastructure,
innovation support and financing homegrown ventures.
2. Overhaul of IPR Laws and Adoption of Utility Patents
Post-WTO membership, India restructured its Intellectual Property Rights (IPR) framework largely
in alignment with U.S. laws—shifting from process to product patents—while rejecting utility
patents, despite their wide acceptance in countries such as Germany, Japan, China and South
Korea.
This move, driven by U.S. lobbying, has often harmed rather than helped our economic interests.
Even under WTO provisions, India retains the right to tailor its IPR laws. It is essential to recast
these laws to serve national objectives and incorporate utility patents to stimulate domestic
innovation.
3. Cap Royalties and Technical Fee Outflows
The outflow of funds related to royalties, licensing fees and technical payments remains poorly
monitored. With foreign brands entrenched across multiple sectors, India is likely running a
significant deficit in this area—again with the U.S. as a major gainer.
We must establish clear limits and rigorous oversight on such payments to preserve foreign
exchange and encourage indigenous capabilities.
4. U.S. Citizen Awareness Campaign Against Arbitrary Tariffs
President Trump’s tariff actions—invoking the Trade Expansion Act (1962), International
Emergency Economic Powers Act (IEEPA) and National Emergency Act (NEA)—have been
arbitrary, authoritarian and economically irrational.
An international communication campaign should highlight to U.S. citizens, enterprises and
policymakers the domestic costs and negative consequences of these tariffs. For instance, the
Fentanyl crisis was used as a pretext for punitive tariffs on Mexico, Canada, and China under
“National security” grounds—an approach that undermines fair trade.
5. Engagement with U.S. Lawmakers, Think Tanks, and Influencers
We must develop and disseminate well-researched, evidence-based reports that expose
inconsistencies in the Trump administration’s trade policies. These should be targeted to U.S.
lawmakers, independent think tanks, academia, and media for open and balanced discussion.
6. Expand Exports to Alternative Markets
While certain exports to the U.S. have inelastic demand and will remain unaffected, others will
face steep declines. The solution is to diversify export destinations paving the way for mutually
beneficial trade. Simultaneously, Indian enterprises must focus on cost optimisation, product
innovation and market share expansion.
7. Unlock Surplus Land for Productive Use
India’s so-called “land shortage” is a persistent myth. Vast tracts—both fertile and barren—
remain unused for decades. Without altering ownership, these lands can be repurposed for
affordable housing, worker housing, social infrastructure, MSME clusters and municipal facilities.
Even “wastelands” (16% of India’s land mass as per colonial-era classification) can be mobilised
for livelihood generation through transparent, equitable, and development-oriented policies.
8. Reduce Compliance Burden & Decriminalise Business Oversights
The current compliance framework disproportionately affects micro and small enterprises,
leaving them overburdened and discouraged. We must urgently simplify regulations, cut
redundant procedures, and remove criminal penalties for non-fraudulent business oversights—
freeing entrepreneurs to focus on genuine value creation.
9. Repatriate Indian Wealth from Offshore Havens
U.S.- and Europe-controlled tax havens—such as the Cayman Islands, Bermuda, Switzerland –
were designed to drain capital from developing nations. Significant Indian wealth is parked in
these jurisdictions.
We should introduce attractive, tax-free bond schemes for affordable housing, infrastructure,
renewable energy and public digital systems—offering anonymity regarding source while
incentivising capital return for national development.
10. Decentralise Wealth Creation
Renewable energy is now more cost-effective than fossil energy and inherently suited to
decentralised deployment. Combined with digital technologies, we can drive value addition in
rural, peri-urban, and tribal regions by enabling access to energy, water, R&D, branding,
marketing, logistics, finance, education, and skill development.
This decentralised growth model can transform surplus manpower with proper skilling into a
driver of inclusive, sustainable, and high-growth economic activity.
Conclusion
In times of economic aggression, our best response is a mix of assertive policy action, strategic
countermeasures, and proactive nation-building initiatives. By taking the above steps in a
coordinated manner, India can strengthen its economic sovereignty, mitigate external risks and
unlock new pathways for sustainable growth.
B. Dangayach
Founder Trustee
Innovative Thought Forum
www.itf-india.com
sbdangayach@gmail.com