New Delhi
American economist Richard Wolff has dismissed the recent tariff hike imposed by the United States on Indian goods, describing it as an ineffective move. He compared the action to “a mouse hitting an elephant,” emphasising India’s growing economic stature and ability to withstand such pressures.
Tariffs imposed by US
The comments come in the wake of former US President Donald Trump’s decision to impose steep tariffs on Indian imports, doubling the existing rates to about 50 per cent. The measure, which came into effect on 27 August, has drawn global attention, especially as it coincides with India’s increased trade engagement with Russia and other non-Western partners.
Wolff argued that such policies are unlikely to achieve Washington’s intended results. “India is simply too large and too powerful. This is not frightening—it is almost comical,” he remarked.
India’s alternatives
According to Wolff, the tariff move may in fact backfire. He explained that if Indian exports face obstacles in the American market, the country will pivot towards alternative buyers, much like Russia did when it was hit by Western sanctions. He noted that New Delhi already enjoys strong ties with other members of BRICS and could expand its trade networks further.
The economist pointed out that India’s growing role in global supply chains means it has the leverage to diversify away from overdependence on the United States. He added that such developments may only strengthen the BRICS bloc, which is positioning itself as a counterbalance to Western-dominated financial structures.
Rising strength of BRICS
Wolff highlighted that BRICS nations—Brazil, Russia, India, China, and South Africa—now account for nearly 35 per cent of global economic output, surpassing the 28 per cent share of the G7. With new members and enhanced cooperation, the grouping is emerging as a formidable player in world trade.
He suggested that US measures such as tariff hikes could accelerate this shift. “Rather than weakening India, Washington may unintentionally push it further towards alliances that reduce American influence,” he said.
Broader implications
The escalation of tariffs is seen by many analysts as part of Washington’s attempt to curb India’s oil imports from Russia and assert its economic dominance. However, experts believe such steps could undermine US credibility, as countries increasingly look for non-Western alternatives to shield themselves from similar pressures.
India, with its expanding economy and growing partnerships, is viewed as being in a stronger position to resist external diktats. Economists argue that while certain industries might face short-term challenges, the long-term impact is likely to be minimal.
Conclusion
Wolff’s remarks underscore a broader reality: India’s economic rise has shifted the global balance of power. What once might have appeared to be a severe blow from Washington now seems more symbolic than substantive. The tariffs, rather than intimidating India, may end up reinforcing its resolve to deepen partnerships with emerging economies and strengthen its independent global standing.