In a bold and controversial move
that has sparked international criticism, U.S. President Donald Trump recently
imposed steep tariffs reportedly as high as 50% on a broad array of Indian
exports to the United States.
These included everything from
textiles and seafood to engineering goods, a clear departure from the
traditional US-India economic partnership. The policy, combined with Trump’s
inflammatory comments portraying India as a “dead economy” and accusing it of
drifting into China's orbit, sent shockwaves through diplomatic circles.
While the immediate economic
impacts are severe hurting Indian exporters and disrupting global supply chains
but the long-term damage may be far more geopolitical. Trump’s actions have not
only alienated the world's largest democracy but may also accelerate India’s
pivot toward multipolar partnerships, including deeper ties with Russia, China,
and other BRICS nations.
The New York Times article analysing
this situation underscored the irony of Trump's strategy: in attempting to
coerce India into more favourable trade terms, he may have undermined one of
America’s most promising strategic alliances in Asia.
Instead of isolating China,
Trump’s aggressive posture risks pushing India closer to it. The analysis
highlighted how this misstep represents not just a trade war, but a failure to
understand India’s evolving global role and its desire for strategic autonomy.
India's recent actions participating
in Shanghai Cooperation Organisation summits, hosting Russian and Chinese
leaders, and reaffirming its commitment to the Global South are signals of a
broader recalibration. The Times article pointed out that New Delhi’s foreign
policy, long grounded in non-alignment, now seeks multipolarity not bipolar
rivalry.
This diplomatic breakdown should
be of particular interest to Malaysia. As a small but strategically placed
nation in Southeast Asia, Malaysia has long navigated the great power dynamics
of the Indo-Pacific with caution and pragmatism. Trump’s blunder offers three
key lessons for Malaysian policymakers.
First, the episode shows the
danger of transactional diplomacy. Trump’s tariff-first approach treats allies
like adversaries, sacrificing long-term geopolitical stability for short-term
domestic political gain. Malaysia must continue resisting such short-sighted
tendencies by anchoring its foreign relations in mutual respect, shared growth,
and regional stability. Unlike the U.S., Malaysia has taken a more measured and
consistent approach to India: an approach now vindicated.
Second, the episode underscores
the importance of strategic alignment over rhetorical alliances. The U.S. and
India have been lauded as "natural allies" for years, especially as
democracies balancing China’s rise. But this rhetoric means little when leaders
act in ways that betray trust.
Malaysia, in contrast, has been
building its India ties patiently: expanding trade, enhancing naval
cooperation, and nurturing people-to-people relations. Rather than loudly
proclaiming alignment, Malaysia has quietly laid the groundwork for a resilient
partnership with India.
Third, Malaysia should see India
not just as a bilateral partner, but as a cornerstone of regional balance in a
multipolar world. India is no longer just an emerging market but it is now a
geopolitical counterweight in the Indo-Pacific.
For Malaysia, which sits at the
crossroads of maritime trade and great power competition, engaging India more
deeply offers strategic hedging against regional volatility. The U.S.-India
fallout is a reminder that nations like Malaysia must diversify their
partnerships, not depend on a single hegemon.
India's increasing significance
to Malaysia is evident across various sectors. In the financial year 2023–2024,
bilateral trade between the two countries is approaching USD 20 billion, with
strong prospects for further growth in areas such as palm oil, digital
technology, and pharmaceuticals.
Culturally, India remains a vital
source of tourism and people-to-people exchanges, while the historical presence
of the Indian diaspora in Malaysia deepens these ties. Strategically, India’s
navy has engaged in joint exercises with Malaysia, supporting shared interests
in maritime security, especially in the vital Strait of Malacca.
Moreover, the digital and
industrial futures of both countries are becoming more aligned. Malaysia’s bid
to become a semiconductor hub fits naturally with India’s push to build a
robust semiconductor and electronics manufacturing ecosystem.
As global supply chains decouple
from China, there is real opportunity for joint innovation and investment
between the two democracies. With Malaysia’s ports and infrastructure and
India’s engineering and digital capacity, the synergy is clear.
Additionally, food security and
agriculture cooperation are emerging as new pillars of India-Malaysia
relations. As global grain and rice markets fluctuate, India’s role in securing
stable food exports especially to Southeast Asia makes it an indispensable
partner. Malaysia, facing increasing climate vulnerabilities, should build
deeper agricultural and environmental cooperation with India to enhance
resilience.
Perhaps most importantly, India’s
geopolitical outlook aligns with Malaysia’s commitment to ASEAN centrality and
multipolar engagement. Both countries favour dialogue, inclusive growth, and
non-interventionist diplomacy.
While the U.S.-China rivalry
threatens to split the region into camps, India offers Malaysia a partner that
can balance power without demanding allegiance. Trump's recent comments have
likely reminded Indian policymakers that the U.S. cannot always be relied upon
for steady partnership. That creates a diplomatic opening that one Malaysia
would be wise to seize.
In sum, the U.S. blunder in handling India serves as a cautionary tale and a strategic signal. While Trump’s tariff war may be rooted in domestic politics, its ripple effects are international. For Malaysia, this moment calls for clarity and courage: to deepen ties with India, avoid the temptations of transactional diplomacy, and lean into a regional future where middle powers shape the balance not merely respond to it.
07.09.2025
Kuala Lumpur.
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https://focusmalaysia.my/trumps-india-tariff-blunder-a-lesson-for-malaysia/
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