New Delhi: As global trade tensions intensify under US protectionist policies, Prime Minister Narendra Modi’s recent visit to Japan has gained considerable diplomatic and economic significance. With both India and Japan facing high tariffs imposed by the Trump administration, the visit is being viewed as a step towards a deeper regional alliance.
During his visit, Prime Minister Modi offered prayers at the historic Daruma-ji Temple in Tokyo, where the chief priest gifted him a symbolic Daruma Doll. In today’s DNA episode, Rahul Sinha, Managing Editor, Zee News, analysed the deals, symbolism behind the doll gifted, and the diplomacy between India and Japan.
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#DNAWithRahulSinha | जापान की ‘डॉल’ ने..ट्रंप की टेंशन बढ़ा दी! डील..’डॉल’ और डिप्लेमेसी का DNA टेस्ट
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Traditionally associated with perseverance and wish-fulfilment in Japanese culture, the doll is based on the teachings of Bodhidharma, an Indian monk from Kanchipuram who introduced Zen Buddhism to East Asia. Interestingly, in Japanese tradition, the Daruma Doll’s blank eyes are gradually filled in, one eye when a wish is made, and the other once it is fulfilled, a gesture reflecting steadfast commitment to goals.
India and Japan, both key players in the Indo-Pacific region, are currently grappling with aggressive tariff regimes enforced by the United States. While India has been hit with tariffs as high as 50%, Japan is facing up to 25% on automobiles and 50% on steel and aluminium exports.
Both nations have refused to succumb to Washington’s demands. India notably continued purchasing oil from Russia, defying American pressure, while Japan recently cancelled a scheduled economic delegation to the US, indicating resistance to transactional diplomacy.
Adding to the tensions, Japanese firms were urged by President Trump to invest $550 billion in American semiconductor and electronics manufacturing. However, Japan has now shelved this initiative, and instead, pledged a substantial investment of 10 trillion yen (approximately Rs 60,000 crore) in India, a signal of shifting strategic priorities in Asia.
The strengthening Indo-Japanese partnership could potentially serve as a counterbalance to US economic coercion. Both nations are now exploring alternatives to US-centric trade, including deeper engagement through platforms like BRICS, which aims to increase inter-member trade and reduce dependence on the US dollar. The group’s recent discussions included setting up a joint financial institution and conducting trade in local currencies, a move that could significantly weaken the dollar’s global dominance.
Currently, 80-90% of international transactions are conducted in US dollars, but the growing inclination towards de-dollarisation, especially in energy and commodity markets, poses a challenge to Washington’s monetary leverage. Analysts predict that if BRICS countries intensify local currency trade, the dollar’s influence in global commerce could drop to around 50% in the next decade.
The economic strain of tariffs is already being felt domestically in the US. A prominent think tank has reported a 2.3% to 2.7% increase in retail prices due to import duties, with the average American household bearing an extra cost of over $1,500 annually. For industries dependent on imports, this inflationary pressure may force wage cuts ranging from 5 to 7%.
As the United States continues to rely on tariffs as a tool of economic leverage, India and Japan’s joint resolve signals a maturing partnership grounded not just in trade but in shared resistance to unilateralism. The Daruma Doll, symbolising resilience and renewed focus, could well represent the spirit of this evolving alliance.
