US Economist Labels Trump’s Tariff Strategy as Self-Destructive
US President Donald Trump’s decision to escalate tariffs on Indian goods has been met with criticism from American economist and John Hopkins University Professor Steve Hanke. In an interview with NDTV, Professor Hanke described Trump’s tariff strategy as “destroying himself,” highlighting the flawed economic rationale behind the move. According to Hanke, the tariff decision is “absolutely rubbish” and lacks a solid foundation, likening it to “resting on sand.” His comments come amid heightened tensions between the US and India following Trump’s increase of tariffs to 50 percent on Indian imports.
Impact on US-India Trade Relations
The tariff escalation has strained relations between the two nations, with India condemning the move as “unfair, unjustified and unreasonable.” The increased tariffs are expected to significantly impact key Indian export sectors such as textiles, marine products, and leather goods. Despite the economic pressure, Indian Prime Minister Narendra Modi has asserted that New Delhi will not capitulate. Professor Hanke advised Indian leaders to remain patient, suggesting that Trump’s economic policies are unsustainable and likely to collapse.
Global Reactions to US Tariff Policies
The international community has also reacted strongly to Trump’s tariff measures. Russia and China have criticized the US for exerting illegal trade pressure on India. Kremlin spokesman Dmitry Peskov denounced the US actions as threats that violate international trade norms. Similarly, Chinese Ambassador to India Xu Feihong condemned the use of tariffs as a tool for suppression, arguing that it undermines WTO rules and is unsustainable.
Trump’s Defense of Tariff Measures
Despite widespread criticism, President Trump has defended his tariff policies, claiming they have positively impacted the US stock market and economy. He warned of a potential ‘1929-style Great Depression’ if legal challenges against tariffs succeed. Trump remains firm in his stance, stating there will be no trade negotiations with India until tariff disputes are resolved.