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India Shouldn’t Trust US, Trump is Economically Illiterate: Economist’s Big Message Amid Tariff Tensions

India Shouldn’t Trust US, Trump is Economically Illiterate: Economist’s Big Message Amid Tariff Tensions

American economist Jeffrey Sachs advised India that assuming US market as its key player would be a mistake (Image courtesy: AI pic)

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  • Published August 16, 2025 4:01 pm
  • Last Updated August 16, 2025

Advocating strongly for India’s economic and trade diversification, globally acclaimed economist and professor at Columbia University Jeffrey Sachs has called US President Donald Trump “economically illiterate.” With this, he advised New Delhi not to trust the United States.

Over the last few weeks, tensions between the economies seem to be brewing as a result of US President Trump’s high tariffs on India. After announcing a 25% levy plus an undisclosed penalty, he doubled the tariffs to 50% just a few days later. Trump said the decision has been taken because of national interests.

However, India doesn’t have to worry much perhaps, if American economist Sachs is to be believed. “Trump is at heart a protectionist. I think he’s economically illiterate, by the way. But in any event, he is economically protectionist,” he said an interview with NDTV recently.

Should India worry because of Trump’s tariffs?

“India needs to rely on a diversified base of partners, Russia, China, ASEAN countries, Africa and elsewhere, and not see itself as mainly focusing on the US market, which is going to be unstable, slow-growing and basically protectionist,” Sachs said as an advice to India on diversifying its trade partners.

The Columbia University professor further argued that India should not view the US market as the sole anchor of its growth. Instead, New Delhi should cultivate robust economic ties with Russia, China, ASEAN countries, Africa, and other regions to complement a growing partnership with the United States.

Sachs went on to note that India should not allow itself to be used by the US, for example, as somehow of the US’ misguided trade war with China. “India, I think, according to at least some people, was going to become the replacement for China,” he said in reference to the China plus one strategy.

The economists’ latest stance comes amid ongoing friction between the US–India trade relationship, including tariff disputes and policy fluctuations that can complicate long-term planning for Indian exporters and manufacturers. Sachs emphasised that the US market, while advanced in technology and high income, is not expanding rapidly.

Hypocrisy of the US?

Sachs, who also happens to be the president of the UN Sustainable Development Solutions Network, called out the blatant hypocrisy in the US’s approach to India’s energy trade with Russia and noted that while India faces sanctions for importing Russian oil, China and parts of Europe continue similar practices with minimal repercussions.

“The unilateral US measures are illegal under international law. That may sound a little quaint these days, but we actually have rules. We have international law… I don’t think what Trump’s doing is legal from the point of view of American law, nor do I think it’s legal from the point of view of international law.”

He added that the US shouldn’t be telling India with whom to trade, nor is the whole premise correct that the US has the right to punish Russia and its partners because of the war in Ukraine.

In reply to a question regarding the US getting miffed at India’s continued usage of Russian weaponry, Sachs lamented, “The US wants to be the only weapons seller. God, I wish we were selling other things. But in any event, the US can’t be.”

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RNA Desk

RNA Desk is the collective editorial voice of RNA, delivering authoritative news and analysis on defence and strategic affairs. Backed by deep domain expertise, it reflects the work of seasoned editors committed to credible, impactful reporting.

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