‘Make No Sense’: US Economist Slams Trump’s Tariffs On India As ‘Stupid, Delusional’
Introduction
International trade relations shape the prosperity of nations and influence diplomatic ties. In 2025, the Trump administration enacted steep tariffs on imports from India, sparking intense debate about their rationale and consequences. Jeffrey Sachs, a renowned American economist, publicly criticized these measures, calling them “stupid” and “delusional.” This comprehensive article analyzes the background to these trade actions, the pointed critique from experts, and the broader economic and diplomatic ramifications for both countries.
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The Tariffs Explained: Timeline and Motives
In August 2025, the United States imposed tariffs on Indian goods, beginning with a 25% surcharge and swiftly escalating to rates as high as 50% on numerous product categories. The stated reasoning was India’s decision to continue purchasing oil from Russia, meant as a pressure tactic to influence diplomatic alignments concerning global conflicts.
Key Facts:
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Tariffs applied to Indian exports including textiles, gems and jewellery, auto components, chemicals, and more.
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Critical goods like pharmaceuticals, semiconductors, crude oil, and minerals were exempted.
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India became subject to some of the highest tariffs from the US among major Asian trading partners.
Why Did the Tariffs Prompt Harsh Criticism?
Jeffrey Sachs, known for his expertise in global economics, sharply condemned the tariff actions. He argued that:
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They raise costs for US consumers, making everyday products more expensive.
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They disrupt manufacturing supply chains, causing economic pain for US businesses.
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Unilateral tariffs violate established international trade norms and undermine decades of diplomatic progress.
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Such measures may actually push India closer to alternative partnerships, including China and Russia, and damage the US’s reputation as a reliable ally.
Sachs described the move as “delusional”—believing punitive trade tactics would force a sovereign nation into compliance—and “stupid” for the economic self-harm it causes.
Economic Impact: Two-Way Damage
These tariffs have wide-reaching economic implications for both nations.
Impact on India
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Indian exporters face steep barriers, particularly in sectors like textiles, leather, and auto parts.
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Loss of access to the large US consumer market threatens jobs, especially in small and medium enterprises.
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Lower export volumes could reduce India’s GDP growth and overall competitiveness.
Impact on the United States
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US consumers pay higher prices for Indian goods, adding pressure to inflation.
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Businesses lose access to crucial Indian components and finished products, disrupting supply chains.
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The US risks isolating itself internationally and hindering its own trade competitiveness.
The Legal and Constitutional Angle
Jeffrey Sachs also questioned the legality of the new tariffs. Trade and tariff powers in the US are constitutionally delegated to Congress, not the executive. Experts argue that bypassing legislative oversight erodes democracy and sets a risky precedent.
Internationally, the tariffs appear to reject collaborative trade norms, violating agreements set by bodies like the World Trade Organization. Such moves weaken global rule of law and create instability in international economic relationships.
Diplomacy at Risk: The US-India Relationship
India denounced the tariffs as unfair, reiterating its right to chart independent foreign policy and economic decisions. Diplomats expressed concerns that the US is punishing legitimate commercial choices rather than constructively engaging in dialogue.
As a result, India responded by:
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Exploring alternative export markets in Asia, Africa, and Europe.
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Reducing its reliance on US trade by developing new partnerships.
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Supporting domestic industries most affected by the tariffs.
American economists warn that this rift could weaken strategic cooperation on multiple fronts, including technology, defense, and regional security. The episode may lead to broader realignment of India’s diplomatic priorities.
Protectionism: The Global Backdrop
These tariffs fit within a larger pattern of protectionist policies promoted by the Trump administration, which aim to reduce trade deficits and protect domestic industries. However, critics note that:
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Protectionism tends to reduce competition, stifle innovation, and raise consumer prices.
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Retaliatory trade policies rarely achieve their intended goals and can provoke trade wars.
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Historical precedents reveal that such measures often harm the sponsoring country as much as—if not more than—the targeted one.
For India, the tariffs are an incentive to diversify export destinations and fortify the resilience of its domestic economy.
Arguments Against Tariffs as Diplomatic Tools
Most leading economists agree that tariffs are ineffective tools for complex diplomatic objectives. Key points of critique:
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They are blunt instruments that punish consumers and businesses without necessarily changing the targeted government’s policies.
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They undermine trust and goodwill, essential for long-term strategic relationships.
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They may provoke further escalations or foster new alliances outside the initiator’s sphere of influence.
The Trump tariffs on India are viewed by many as illustrative of these broader systemic flaws.
India’s Adaptive Strategies
Faced with trade barriers, Indian policymakers and businesses have adopted strategies to soften the blow:
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Diversification of Markets:
Indian exporters are identifying opportunities in Europe, Southeast Asia, and Africa, leveraging new trade agreements. -
Strengthening Domestic Industry:
Programs to enhance productivity, quality, and competitiveness at home help reduce over-dependence on single markets. -
Government Support:
Assistance to vulnerable sectors, with financial aid, policy reforms, and market intelligence, reduces employment and growth risks.
These steps foster long-term stability and lessen vulnerability to shifting global policies.
Conclusion: The Lessons of Tariff Diplomacy
The events of 2025 offer clear lessons for international economic relations. Expertise and experience emphasize that punitive tariffs based on political disagreements tend to:
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Cause economic hardships for both sides.
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Erode trust and strategic cooperation.
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Violate foundational principles of collaboration and mutual benefit.
Calls for constructive engagement, fair negotiation, and adherence to international law remain essential for resilient and prosperous relationships. As seen from expert criticism and the reality on the ground, effective policy is rooted in respect, dialogue, and thoughtful analysis—not in adversarial moves that “make no sense.”
India’s response showcases adaptability, the importance of diversified partnerships, and commitment to self-reliance. For both nations, the future depends on returning to strategies built on shared growth, cooperation, and mutual understanding.
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