Trump’s 50% Tariff on India Backfires, US Economist Warns of Self-Inflicted Damage

International News:US President Donald Trump has imposed a steep 50% tariff on Indian goods, a move that could significantly impact India’s export sector. Of this, a 25% tariff was already in place, while an additional 25% duty came into effect today. Experts estimate that nearly two-thirds of India’s exports to the United States may be affected by this trade barrier. However, prominent American economist Jeffrey Sachs has sharply criticized the decision, calling it a strategic blunder that will harm the United States more than India.

‘Trump is isolating America’

Professor Sachs, who teaches at Columbia University, said in an interview that Trump is “trying to twist India’s arm” through pressure tactics but will ultimately fail. “He thinks that he can get his way by intimidating India. But it is not wise to assume that a country of 1.5 billion people can be bullied. Instead, this move will push India closer to other major economies, particularly the BRICS bloc—Russia, China, Brazil, and South Africa,” Sachs remarked.

He warned that Trump’s approach risks diplomatic isolation for the United States, as countries frustrated with Washington’s aggressive trade policies may look to deepen cooperation among themselves.

Losses for American companies

Highlighting the economic risks for the US itself, Sachs said, “Trump is isolating America from the global economy. He is harming America’s own industries. Domestic production may rise temporarily, but US companies will lose competitiveness in international markets. I think Trump is not shooting himself in the foot, but rather shooting America in the foot.”

According to him, by raising trade barriers against India, Washington is effectively strengthening global partnerships outside the Western sphere, particularly among emerging economies.

‘US does not care about India’s development’

Sachs also cautioned India against over-relying on Washington. “Trump and his advisors do not know much about India. I tell my friends in India not to trust America too much. The US does not really care about India’s long-term development,” he said.

He further described the move as “one of the most foolish decisions in US foreign policy” in recent times. By targeting India with high tariffs, Sachs argued, Washington risks losing a trusted partner in Asia—a mistake that could have far-reaching consequences for America’s influence in the region.

Strain in India-US trade ties

Trade tensions between India and the US have been simmering in recent years, with disputes over market access, intellectual property rights, and tariffs. While the US has often accused India of following protectionist policies, New Delhi has defended its measures as necessary for safeguarding domestic industries. Now, with the Trump administration’s latest tariff escalation, experts believe that relations may worsen further. At the same time, India is likely to explore closer cooperation with other economic blocs, a shift that could reshape global trade alignments.