The spotlight on US President Donald Trump’s tariffs is distracting attention from a broader strategic effort by the United States and other major powers to preserve their technological dominance at the expense of the developing world. Two recent trade deals reveal how this approach undermines long-term economic development. NEW DELHI – US President Donald Trump’s tariff policies have unleashed global economic turmoil and a wave of protectionist measures. While many of his frequently changing tariffs may prove short-lived, their use as geopolitical weapons is poised to reshape international
But the current fixation on Trump’s tariffs diverts attention from the larger goal: the United States is leveraging its economic power to push for market liberalization and preferential access for American firms, often at the expense of lower-income countries’ development prospects. Today’s US-China standoff is a prime example. America’s hostile posture toward China – maintained under both Trump and former President Joe Biden – has never been just about trade. Rather, it reflects a strategic ambition to preserve US technological dominance by preventing China from catching up in key sectors.
That effort has since become part of a broader campaign to restrict access to advanced technologies across the developing world. The primary tool for achieving this goal has been the imposition of increasingly restrictive intellectual-property (IP) rules that aim to privatize knowledge through patents, copyrights, and industrial designs. This helps explain why the trade agreement with Indonesia includes several provisions designed to limit the country’s ability to move up the value chain into knowledge-intensive industries. Tellingly, Indonesia will eliminate 99% of its tariffs on American industrial, food, and agricultural imports, while Indonesian exports to the US will face an average tariff rate of 19%.
The immediate impact will be felt most acutely by Indonesian farmers, who must now compete against subsidized US agricultural products. But the longer-term risks lie in the dismantling of non-tariff barriers, which could severely constrain Indonesia’s ability to diversify its economy and curtail its access to critical technologies. According to the joint statement announcing the deal, American firms will receive sweeping privileges. Indonesia will remove all content requirements for US-made goods and accept American vehicle-safety and emissions standards, which are far more lenient than its own.
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