1 week Ago By Sathish Govind
The "tariff madness" unleashed by Donald Trump's arbitrary disregard for international trade rules has shaken the foundations of the global trading system. To prevent a slide into protectionism and the threat of global recession, the world must respond through coordinated collective action to uphold fair trade and ensure economic stability.The escalation of tariffs, particularly under the Trump administration, has exposed the fragility of the existing trade order.
By abandoning its leadership in multilateral institutions such as the WTO, the United States has created a dangerous vacuum that risks dragging the world backward into economic nationalism.A strategic coalition comprising BRICS, the European Union, ASEAN, and the African Union could emerge as a stabilizing force to uphold open, rules-based commerce. Together, these blocs represent 70% of the world's population and are the engines of global economic growth beyond the United States.
These regions bring complementary strengths. Africa is rich in resources; ASEAN, China, and India form the backbone of global manufacturing; and the EU contributes technological expertise. A united front leveraging these capabilities would send a powerful message that global prosperity does not depend on Washington's approval.
This coalition should champion international law, particularly the principles enshrined in the WTO, resist unilateral trade actions, and accelerate trade agreements among blocs—such as the ASEAN-EU FTA—to deepen mutual ties.To reduce exposure to US-centric systems, member nations could also settle trade in local currencies. Collective and coordinated responses to unjust tariffs, particularly those targeting strategic industries, would further safeguard shared interests.
The intention is not to isolate the US but to demonstrate that global commerce can thrive without its domination. No single nation has the right to dictate the terms of world trade—as the US has made clear through its unilateral actions.Trump's use of tariffs as a blunt instrument of coercion should serve as a wake-up call, revealing the vulnerability of the current trading system and providing an opportunity to build a fairer, more balanced global order rooted in cooperation rather than conflict.
Countries must also diversify away from reliance on the US in key sectors such as semiconductors, rare earths, and agriculture. China and India, for instance, can strengthen domestic supply chains and reduce strategic vulnerabilities. China could increase soybean imports from Brazil, while India, Brazil, and Indonesia enhance agricultural output to boost food security without dependence on the US.
Rare earths—essential for electronics, electric vehicles, and defence—are another pressure point. Although China currently dominates the sector, countries are now investing in rare earth mining across Africa, Australia, and South America to avoid overconcentration and build alternative supply sources.Public understanding, especially within the US, is vital.
It must be made clear that aggressive tariffs could destabilize the US economy and strain its alliances. Globalized production has allowed companies to benefit from lower input costs and efficient supply chains. This has enhanced competitiveness among US companies while maintaining access to diverse markets.
Tariffs undermine this system by increasing import costs, which are ultimately passed on to American consumers in the form of higher prices for everyday goods. Additionally, retaliatory actions from other countries would limit access to global markets for U.S.
manufacturers, gradually diminishing their share in international trade.The world must come together to resist this dangerous trend. It will require political will, strategic vision, and a long-term mindset.
If nations act in concert, they can blunt the worst effects of these policies—and reshape the global order into one that is just, balanced, and no longer dependent on a single superpower.© New Straits Times Press (M) Bhd.
