US tariffs: Unravelling the ‘rules-based’ international order

Over the years the US and the West has been in the habit of imposing tariffs, sanctions and other economic pressures on particular countries whose policies they claimed were not in keeping with a “rules-based international order.” The US has taken the lead in this sphere. It has unilaterally imposed tariffs on different states ranging from Russia to China to smaller non-NATO nations for refusal to comply with US demands.
The US and European Union (EU) also imposed sanctions on Russia for its invasion of Ukraine and threatened penalties on other countries purchasing petroleum from Russia.
The phrase ’rules-based international order’ is frequently used by Western powers, particularly the US and its NATO allies, as a guiding principle of global diplomacy. It suggests a fair and stable system where rights and protections apply equally to all. But in reality, this so-called order is selective.
For instance in the 1960s, after Sri Lanka nationalised the petroleum industry in the country, the US suspended aid to the country under the ‘Hickenlooper Amendment’. The legislation allowing them to cut off aid to countries nationalising US investments without fair compensation. 
The action targeted Sri Lanka’s 1962 takeover of oil company assets, which according to the US was made without paying compensation to the US companies. What was not mentioned however, was that over the years the companies concerned had extracted profits from this country far over and above their investment.
Then Premier Sirimavo Bandaranaike stood up to the American Government accusing the US regime of trying to dictate terms. She is reported to have said “Ceylon is not prepared to dance to the tune of capitalist countries to obtain aid.” Unfortunately these days our leaders are not that forthright and we tend to bend over backwards to appease.
For example the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on 19 January announced a new wave of sanctions on more than 50 companies, individuals, and vessels accused of helping Iran export petroleum and LPG in violation of international restrictions.  
The OFAC’s report noted that several consignments had reached “end users in Sri Lanka and Bangladesh,” though it did not name any Sri Lankan companies or Government entities involved. Our Government response was to claim, Sri Lanka did not import any petroleum or LPG products from Iran – no protest against attempts to muzzle our choice of source or cost effectiveness. 
During his term in Presidency, US President Trump imposed huge unilateral tariffs on goods from China and lower tariffs against other countries literally turning the ‘rules-based international order’ on its head. The countries of the EU and elsewhere, on bended knees negotiated with the US President to lessen tariffs. The countries of the EU also fell in line with the US regarding non usage of Chinese telephone 5G network equipment after the US threatened the group.  After an initial weak-kneed resistance the EU countries fell in line with US demands.
Only China and Russia resisted the unilateral imposition of tariffs by the US, imposing similar tariffs in retaliation. Subsequently the US administration arrived at amicable agreements with both countries. Recognising the weakness of the EU and its willingness to bend to power, today the US is tearing up whatever is left of the ‘rules-based order’.
Presently the US under Trump has announced its intention to take over Greenland – a part of Denmark – and fellow member of the US-led NATO alliance either via armed intervention or a negotiated settlement. He also warned eight European countries opposed to the US takeover of Greenland with 10% tariffs with effect from 1 February. He added the tariffs could rise to 25% later and would last until a deal was reached. 
In a move seen as the ‘worm has turned’ and signifying a major reversal for the US, the EU has put on hold the ratification of the EU-US trade deal announced in July 2025. The decision was announced after Trump’s threat to impose tariffs on 8 EU countries opposing a US takeover. Today EU countries have begun putting troops into Greenland.
None of the EU States found fault with the US for blackmailing countries trading with Russia. Today their lickspittle behaviour to power, has come back to haunt them. The US is now attempting to take them hostage with threats of tariffs on the EU itself, if they resist his planned takeover of Greenland.

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