Echoes of the Past India Still Struggles with Tariff Burdens

National News: The recent discussions about America imposing heavy tariffs on Indian goods are not new. A similar dispute happened back in 1989, when the United States threatened India under a trade law known as Super 301. The standoff between the two nations lasted nearly a year before the US withdrew, but the event left behind strained ties.

The Era of Trade Wars

In the 1980s, the US was engaged in a fierce trade battle with Japan, which was then its biggest economic competitor. To gain an upper hand, Washington introduced a powerful tool—Super 301—in 1988. This law gave the American president authority to identify countries accused of “unfair trade” and penalize them with tariffs.

Bush Expands the Pressure

President George H. W. Bush went beyond Japan and used this tool against several nations. Even friendly countries like South Korea, Taiwan, and some European partners faced pressure. Many of them quickly agreed to open their markets or reduce exports. But in June 1989, Bush’s administration formally targeted Japan, Brazil, and India for strict action.

India Refuses to Bow Down

Unlike Brazil and Japan, India refused to negotiate. Prime Minister Rajiv Gandhi made it clear that no foreign power could dictate how India should run its economy. This firm stance gained wide support in Parliament, where lawmakers opposed giving in to American demands.

Risks for India’s Economy

At that time, the situation was risky. About one-fifth of India’s exports went to the US. The economy was smaller and weaker than it is today, which made the threat even more serious. Although India was less dependent on foreign trade overall, its limited economic strength made it vulnerable.

A Lesson for Today

The 1989 incident remains an important reminder. It showed the dangers of depending too heavily on one trading partner and highlighted the value of standing firm in global negotiations. Today, as tariff concerns rise again, India can look back at this history to guide its response and protect its national interests.