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Trump is a protectionist, unreliable trade partner for India: Economist Jeffrey Sachs

By ANI | Updated: August 16, 2025 18:45 IST

New Delhi [India], August 16 : With the US having imposed 50 per cent tariffs on Indian goods, renowned ...

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New Delhi [India], August 16 : With the US having imposed 50 per cent tariffs on Indian goods, renowned economist and Professor at Columbia University Jeffrey D Sachs has described US President Donald Trump as a "protectionist" and an "unreliable trade counterpart" for India.

In an interview with ANI, Jeffrey Sachs said the Trump Administration's approach is "clumsy" and "self-destructive" for its foreign policy interests.

"I was saying for a long time, don't trust the United States. Don't believe that India is going to slip in and replace China in the global value chains. No way Trump would have that happen. Trump's a protectionist. India's not going to see a massive expansion of Indian exports to the US even if they're merely replacements of China. Trump's a protectionist and an unreliable trade counterpart," he said.

Commenting on the broader consequences of Trump's policies, he said Trump's policies are doomed to fail.

"From an economic point of view and a geopolitical point of view, Trump's policies are doomed to fail. They will not improve the US economy. They will isolate the United States geopolitically. They will strengthen the BRICS and other groups..." he said.

Sachs emphasised India's need to maintain an independent foreign policy.

"India is so big, so important, such a great power. It should say we don't ally the United States against China. We have our own relations. We need our bilateral relations with China," he said.

He praised India's diplomatic approach in the wake of US tariffs.

"India's right. Take a deep breath. Don't do anything dramatic. Don't get too vituperative. But I personally would do exactly what Prime Minister Modi's doing. He's flying to meet with President Xi Jinping. He's meeting with President Putin. He's meeting with President Lula. Those are India's real partners, by the way," Sachs said.

Answering a query, Sachs stressed problems between India and Pakistan need to be addressed on a bilateral basis.

"The real issues between India and Pakistan are bilateral. They can never be anything but bilateral, actually," he said, ruling out any mediation.

Trump announced 25 per cent tariffs on Indian goods in July, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.

Sachs highlighted the legal challenges facing the Trump administration in the wake of tariffs.

"...Tariffs are wrong in that they're destructive for the US economy. It violates international law. It's a breakdown of our political system in the United States. We have a constitution. We don't have one-person rule," he said, while also referring to powers of the Congress under Article I, Section 8 of the US Constitution.

"There's actually a lawsuit now in the US Appellate Court, which says that Trump has violated the law by imposing these tariffs. There's a real possibility that Trump's entire tariff regime will be deemed, as it should be, unconstitutional," he added.

Sachs said Trump thinks he is an emperor.

"Trump hates the BRICS. Why? Because they stand up and say to the US, you don't run the world. The world is multipolar and we want to cooperate with you, but we don't want you to run the world. President Lula summarized it best. He said, we don't want an emperor. This is basically the point. Trump thinks he's an emperor," he said.

India and the US initiated talks for a just, balanced, and mutually beneficial Bilateral Trade Agreement (BTA) in March this year, aiming to complete the first stage of the Agreement by October-November 2025.

US is keen on greater access to India's sensitive agriculture and dairy sectors, which provide livelihood to a large section of people.

On April 2, 2025, President Trump signed an executive order for reciprocal tariffs on various trade partners, imposing varied tariffs in the range of 10-50 per cent.

He subsequently kept the tariffs in abeyance for 90 days, while imposing a 10 per cent baseline tariff, providing time and space for making trade deals. The deadline was to end on July 9, and the US administration later pushed it to August 1. He announced reciprocal tariffs on India ahead of the deadline.

Commerce and Industry Minister Piyush Goyal told Parliament earlier this month that the government is examining the impact of tariffs and will take all necessary steps to safeguard the national interest.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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