With the India-US trade deal yet to be finalised after Donald Trump slapped 25 per cent tariffs and also labelled India’s economy “dead,” Harsh Goenka has shared a clip of famous American economist Jeffrey Sachs cautioning that “US will not like India any more than it likes China now” when it becomes a successful economy.
When asked, “What would be your advice for India as it negotiates probably one of its most difficult trade agreements in the last several decades,” Jeffrey Sachs details how he would be left “surprised” if India pulls off a trade deal with the United States.
Stating that he might be wrong, Sachs said that the “US government has no interest in India’s goodwill per se,” labelling it as a “game” from the US’s side, in order to “displace China.”
The economist further went on to say that ‘as and when India becomes a successful economy,’ the “United States will not like India any more than it likes China now.”
Harsh Goenka’s post carrying the clip of the US economist’s interview comes days after Donald Trump mounted a sharp attack on India and Russia for their ties and said that the two countries can take their “dead economies down together”.
Impact of Trump’s tariffs
Besides his “dead economy” jibe against India, the POTUS, in a fiery Truth Social post, also imposed 25 per cent tariffs on “friend” India, citing “obnoxious trade barriers.”
According to experts, Trump’s tariff on India is expected to hit Indian exports by $33 billion. The Indian government may compensate by imposing reciprocal taxes on US imports.
Challenges to India-US trade deal
Amid the dicey scenario, experts said the much anticipated India-US trade deal may face some major roadblocks, including mutual mistrust, an unpredictable negotiation environment, US demand for Access to the dairy and agriculture segment, strategic autonomy against geopolitical alignment, and a penalty on Russian crude oil imports.
Trump to ‘substantially’ hike tariffs
Following the 25 per cent tariff announcement, Donald Trump, again warned on Monday that he will “substantially” hike US tariffs on Indian goods over its purchases of Russian oil.
