America has imposed a 50% tariff on products originating from India. American economist Richard Wolff has termed this incorrect, stating that this move will strengthen the BRICS nations and cause economic damage to America.
India-US Relation: Trade tensions between America and India are once again in the spotlight. US President Donald Trump has imposed a tariff of up to 50 percent on several products originating from India. This tariff has been in effect since Wednesday. However, American economists have also begun to criticize this decision. They say that this step could prove detrimental not only to India but also to America.
American Economist Richard Wolff Criticizes Trump
American economist Richard Wolff has bly condemned Trump's tariff decision as incorrect. He stated that America is adopting a harsh stance towards a large democratic country like India, and this move could backfire on America itself. Richard Wolff gave an example, saying it's like a mouse trying to punch an elephant.
Wolff clearly stated that by imposing tariffs on India, America wants to show that it is the toughest country in the world. However, in reality, this policy is weakening America's global economic interests.
India's Stance Will Strengthen BRICS
Richard Wolff stated in his podcast and media interviews that if America closes its markets to India, India will not hesitate to explore other options. He cited Russia as an example, stating that Russia also found new markets after sanctions from Western countries. Similarly, India will increase its exports to BRICS and other countries instead of the American market.
He said that the BRICS nations — India, Russia, China, Brazil, and South Africa — now account for about 35 percent of global production. Meanwhile, the share of G7 countries has decreased to about 28 percent. In such a scenario, by imposing tariffs on India, America is indirectly strengthening the BRICS nations.
Russia Issue Behind the Tariff
It is noteworthy that the Trump administration has imposed this tariff over the purchase of oil from Russia. Trump alleges that India is economically strengthening Russia in the Ukraine war by purchasing oil from Russia. For this reason, America has applied a 50 percent tariff on most Indian products.
America believes that to pressure Russia, it is necessary to economically corner countries like India. However, experts say that this move will lead India to find alternatives, but it could prove to be a losing deal for American companies.
Impact on India's Economy
India is currently one of the fastest-growing economies in the world. India's market is not only vast but also a center of attraction for global investors due to its rapidly emerging middle class and large-scale industrial growth. In such a situation, by imposing tariffs on India, America is harming its own trade interests.
India Has Many Options
India already has b trade relations with BRICS nations. Together with China, Russia, Brazil, and South Africa, India is not only increasing trade but also working on alternative economic structures. Experts say that if America pressures India, India will further strengthen its trade with BRICS and Asian countries.
In addition, India has also increased its presence in African, Latin American, and Asian markets in the past few years. Therefore, this tariff move by America will not affect India significantly.
Potential Threats to the American Economy
Richard Wolff says that America is forgetting that it is no longer the sole economic superpower. China, India, and the BRICS countries are jointly creating an alternative economic pole in comparison to America. If America continues to impose such tariffs, its traditional allies will also start looking for new alternatives.
He stated that in the coming years, America will have to understand that unilateral decisions in global trade cannot last for long. Countries like India know how to trade on their own terms and will not bow to any pressure.
Questions Raised on Trump's Policies
There has already been debate in the American media and among economists regarding the policies of the Trump administration. Critics say that Trump had previously imposed tariffs on China, which resulted in losses for American companies. Now, by imposing a 50 percent tariff on India, they are repeating the same mistake. Richard Wolff says that by imposing tariffs on India, America is harming its own supply chain. Especially in the IT, pharma, and textile sectors, India is a major supplier to America.
