President Donald Trump’s economic policies are “self-destructive” in nature, said former Governor of Reserve Bank of India (RBI) C Rangarajan, while stressing on the need for a world with easy trade. He said the steps taken by the US president are going to have a severe impact on the Americans as well. The remark was in reference to the tariff regime of Trump as he continues to impose heavy duties on imports from other countries.
India and Brazil are among the top taxed nations by Trump, who has repeatedly called Prime Minister Narendra Modi his friend, but added that India has been a “tariff abuser” for decades with the US not being able to do the business. Addressing the 15th Convocation of Icfai Foundation for Higher Education in Hyderabad, the ex-RBI boss said that certain policies of Trump have brought global economic trends to a standstill.
Trump’s policies and its repercussions
Rangarajan said that there are certain groupings that are emerging with different aims across the globe. Without naming the BRICS, he said that some groups are following the principle of freer trade but the ultimate goal must be one large world with freer trade, reported PTI.
“The world today is in flux. The pursuit of certain economic policies by President Trump has brought world trade to a standstill. Hopefully, good sense will prevail and the policy makers in the US will realise the policies they want to pursue are self-destructive,” Rangarajan, who has also been the Chairman of Prime Minister’s Economic Advisory Council, said.
“India is the worst hit,” he added. The former RBI Governor said that the 2047 ‘Viksit Bharat’ goal is not just a statistical goal – rather “it has to be a transformative journey that requires the collective effort of government and society”.
India, US and tariffs troubles
India is the worst hit nation by the US tariffs after Brazil, despite President Trump’s constant praise for PM Modi. His aides have been calling out New Delhi for its tough stance on certain sectors while going for a trade deal with the US, and also for buying Russian oil.
Trump first impose 25% tariffs on products entering the US and then levied additional 25% penalty on India for purchasing Russian oil and “fuelling Ukraine war” – raising the total tariffs to 50%.
Peter Navarro has blamed India several times, and the internet users have put out reality to fact check him. After the Shanghai Cooperation Organisation (SCO) summit in China, where PM Modi met Chinese and Russian presidents Xi Jinping and Vladimir Putin respectively – the US has toned down itself.
Trump had shared an image of Modi-Xi-Putin stating that the US has “lost India and Russia to deepest, darkest China”. Now, Washington has signalled bettering ties, stating that a successful trade deal is a possibility and the economic relations between the two countries will continue to drive their paths.