Former Reserve Bank of India Governor Raghuram Rajan has said that US President Donald Trump’s decision to impose high tariffs, including a 50% duty on Indian goods. It is part of a broader strategy that extends beyond trade economics.
In an interview with Rajdeep Sardesai, Consulting Editor of India Today TV, Rajan clarified that tariffs used not only as a trade tool but also to exert political and economic power.
Why Trump targets India with 50% Tariffs, Raghuram Rajan Explain
Rajan noted several reasons behind Trump’s push for tariffs. “I think he believes that a current account deficit or trade deficit shows that other countries are taking advantage of the United States instead of sending goods at low prices that benefit US consumers,” he said.
According to Rajan, Trump has held this belief since the 1980s when he criticized Japan. Rajan highlighted that the former US President views tariffs as a way to “level the playing field.”
Is It About Russia and Oil?
Regarding whether India’s purchase of discounted Russian oil triggered the US tariffs, Raghuram Rajan mentioned that the issue goes beyond fairness. “I think we are beyond discussions of fairness, sovereignty, and so on. We handling situation that is a power play,” he said. He explained that the decision appears to come from Trump’s belief that India is “not playing by the rules he set, and needs to singled out.”
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