Amid rising tensions between the US and India over escalating tariffs, Steve Hanke, a renowned economist and Professor at John Hopkins University, has sharply criticized US President Donald Trump for his trade policies, claiming that the President is “destroying himself” with his approach to global trade.
In an interview with NDTV, Professor Hanke described Trump’s tariff policies as “absolutely rubbish” and based on flawed economics. He argued that the tariffs imposed by Trump are “resting on sand,” and emphasized that the economic foundation behind the move is incorrect. Hanke, known for his expertise in economics, said, “The main thing is to follow Napoleon’s advice—never interfere with an enemy in the process of destroying oneself. I think Trump is destroying himself.”
His remarks come in the wake of the US’s decision to increase tariffs on Indian goods by 50%, following India’s ongoing imports of Russian oil. Hanke suggested that Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar should remain patient and not rush into retaliation, as he believes the economic strategy behind the tariffs will ultimately collapse.
The economist also pointed out the US’s ongoing trade deficit, noting that the country’s spending exceeds its national output. He further criticized Trump’s tariff policies, asserting, “Trump’s tariff economics is absolutely rubbish.”
The Tariff Escalation and India’s Response
On Wednesday, Trump escalated the tariff dispute with India by imposing an additional 25% duty on Indian goods, which was later doubled to 50%. This decision has sparked outrage in India, which condemned the move as “unfair, unjustified, and unreasonable.” Sectors such as textiles, marine, and leather exports are expected to be hit hardest by the new tariffs. Prime Minister Narendra Modi responded to the pressure, stating that India would not back down in the face of economic coercion.
The tariffs imposed on India, primarily due to its continued imports of Russian oil, place India alongside Brazil, the country facing the highest US tariff rate of 50%. This decision has been met with criticism from both Russia and China.
Russian officials have expressed concerns over the legality of the tariffs, with Kremlin spokesman Dmitry Peskov calling them an “illegal trade pressure.” China’s Ambassador to India, Xu Feihong, also criticized Trump, stating that using tariffs as a weapon against countries is a violation of the UN Charter and WTO rules.
Trump’s Economic Stand
In response to the escalating tensions, Trump defended his tariff policies, claiming they are driving economic growth in the US. On Friday, he posted on Truth Social that tariffs were having a “huge positive impact” on the US stock market, which he claimed was setting new records regularly. Trump also boasted that “hundreds of billions of dollars are pouring into our country’s coffers.”
However, he also warned that if the US Court of Appeals for the Federal Circuit rules against the tariffs, it could lead to a “1929-style Great Depression.” Despite the uncertainty, Trump’s administration continues to maintain its position, and the standoff with India remains unresolved.
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