'Economist Jeffrey Sachs labels Donald Trump's tariffs as unconstitutional, asserting India's self-reliant stance'
In a recent turn of events, US President Donald Trump has imposed a 50% tariff on Indian imports, primarily as a punitive measure related to India's purchase of Russian oil and as part of broader frustrations with India's trade policies, business environment, and foreign alignments, especially India's ties with Russia and the BRICS group.
The tariffs, consisting of an initial 25% effective on August 7, 2025, plus an additional 25% to come into force on August 28, 2025, are seen by Trump as a way to pressure India to reconsider its foreign policy and trade practices.
The US-India relationship has been further strained by the President's remarks that India's economy is "dead" and its tariff barriers are "obnoxious." These comments have added fuel to the fire, escalating the tension between the two nations.
India and Brazil share the top spot among countries on the US tariff list. Interestingly, other countries that also trade with the Russian Federation were not targeted by Trump's tariff hikes.
The imposition of additional tariffs by Donald Trump on India is considered "extremely unfortunate" by India's external affairs ministry. Negotiations between the US and India on a trade deal were expected to conclude around this time, but the tariff hikes have cast a shadow over these negotiations.
Famed economist Jeffrey Sachs has issued a warning to India, advising against relying on a partnership with the US to reduce dependence on China. Sachs believes that India is a great power that has an independent standing in the world and should not count on a great trade relationship with the US.
However, Sachs also believes that India could potentially reduce Washington's dependence on Chinese supply chains, but should not count on it. He has expressed his opinion during an interview, stating that everything that Trump is doing on tariffs is unconstitutional.
Despite the ongoing tensions, experts like S&P Global Ratings Director YeeFarn Phua have stated that the tariffs are unlikely to significantly affect India's economic growth, as India's exports to the US represent around 2% of its GDP, and key sectors like pharmaceuticals and consumer electronics are exempt from the tariffs.
It is important to note that no direct citation or statement from Jeffrey Sachs on this matter appears in the search results, so his reaction to Trump's tariff imposition on India is not documented here.
The tariff hikes come at a time when the US and India are facing challenges in their relationship, with tensions arising from perceived US favoritism towards Pakistan and concerns that India's strategic partnerships clash with US interests. These issues, along with the tariff hikes, are likely to continue shaping the US-India relationship in the coming months.
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- The recent 50% tariff imposed by President Donald Trump on Indian imports, primarily related to India's foreign policy and business environment, has been criticized as "extremely unfortunate" by India's external affairs ministry.
- Famed economist Jeffrey Sachs has warned India against relying on a partnership with the US to reduce dependence on China, advocating instead for India to maintain an independent position in world politics and economics.
- Experts suggest that the tariffs, which primarily affect Indian exports to the US, will not significantly impact India's economic growth, as India's exports to the US represent around 2% of its GDP, and key sectors like pharmaceuticals and consumer electronics are exempt from the tariffs.
- The ongoing tensions between the US and India, exacerbated by the tariff hikes, are likely to continue shaping the US-India relationship, particularly regarding US interests in the politics and policy-and-legislation of countries associated with the BRICS group and beyond, such as India's ties with Russia.
(Disclaimer: The opinions expressed by Jeffrey Sachs and other experts are based on their interviews and analysis, and not on any official documents or statements.)
