New Delhi, Aug 29 Leading US economist Richard Wolff has warned that a significant global economic shift is underway, noting that BRICS nations have surpassed the G7 in global output, with BRICS at 35 per cent and G7 at 28 per cent of the world GDP.
Wolff asserted that India's refusal to stop buying Russian oil despite US pressure showed how the balance of power is shifting.
“India is now, according to the United Nations, the largest country on earth. The United States telling India what to do is like a mouse hitting its fist on an elephant,” he said.
Wolff noted in a podcast that China has reduced its US Treasury holdings as US debt reaches $36 trillion, which could pose serious challenges to the US dollar. If that trend continues, the US may face higher borrowing costs or domestic spending cuts, which could further weaken its global position, he added.
The economist criticised US tariffs as an ineffective strategy that could bring India and other BRICS members closer together. “What you’re doing is developing the BRICS to be an ever larger, more integrated and successful economic alternative to the West,” he explained.
Wolff slammed the Trump administration's claim that tariffs can revive US manufacturing. He said, “No company that is currently manufacturing something in Brazil or China or India is going to decide to spend a fortune to move production back to the United States.”
According to him, US tariffs run the risk of excluding American exporters from overseas markets without the creation of new domestic jobs.
The Trump administration imposed an additional 25 per cent tariffs on India starting Wednesday, bringing the total levies to 50 per cent.
Prime Minister Narendra Modi has ruled out any compromise that threatens the interests of India’s farmers and small businesses. India has termed the US tariffs “unjustified and unfair”.
Meanwhile, PM Modi and Chinese President Xi Jinping will hold a bilateral meeting on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin on Sunday. This is PM Modi's first visit to China in the last seven years.
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