"India Should Wait, Trump's House Of Cards Will Fall": Economist To NDTV On Tariff
The tariff decision of Mr Trump, the professor said, is "absolutely rubbish" and merely "resting on sand". "The economics is just all wrong," he added.
His remarks came amid rising tensions between the US and India over the former's escalation of tariff to 50 per cent on Indian goods.
"The main thing is to follow Napoleon's advice - he said never interfere with an enemy in the process of destroying oneself. I think Trump is destroying himself," Professor Hanke said.
"I think in the case of India, Prime Minister Narendra Modi and External Affairs Minister S Jaishankar should keep their cards close to the chest and wait for a little while. The reason I say that is I think Trump's house of cards will collapse. The economic tremors for tariffs are resting on sand," he added.
Professor Hanke claimed there was a huge trade deficit in the US since the spending by the Americans is more than the gross national product. "So the economics is just all wrong. Trump's tariff economics is absolutely rubbish," he said.
On Wednesday, Mr escalated his tariff offensive against India by slapping an additional 25 percent duty and subsequently doubling it to 50 percent on Indian goods over New Delhi's continuous imports of Russian oil.
India condemned the "unfair, unjustified and unreasonable" move that is likely to hit sectors such as textiles, marine and leather exports hard. Prime Minister Narendra Modi on Thursday said New Delhi would not back down in the face of economic pressure.
With this action singling out New Delhi for the Russian oil imports, India will attract the highest US tariff of 50 percent along with Brazil.
Both Russia and China, among others, have slammed Mr Trump for exerting illegal trade pressure on India.
"We hear many statements that are in fact threats, attempts to force countries to cut trade relations with Russia. We do not consider such statements to be legal," Kremlin spokesman Dmitry Peskov told reporters before the US imposed the 50 percent penalty on India.
Chinese Ambassador to India, Xu Feihong took a jab at Mr Trump, saying: " Give the bully an inch, he will take a mile. Using tariffs as a weapon to suppress other countries violates the UN Charter, undermines WTO rules and is both unpopular and unsustainable."
Earlier on Friday, Mr Trump said there will be no trade negotiations with India until a dispute over tariffs is resolved. Later in the day, he warned of a ' 1929-style Great Depression ' if the US Court of Appeals for the Federal Circuit rules against tariffs.
"Tariffs are having a huge positive impact on the Stock Market. Almost every day, new records are set. In addition, Hundreds of Billions of Dollars are pouring into our Country's coffers", Trump wrote on Truth Social.
"Our Country deserves SUCCESS AND GREATNESS, NOT TURMOIL, FAILURE, AND DISGRACE. GOD BLESS AMERICA!" Trump wrote.
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