Trump’s ‘self-destructive’ policies have stalled world trade, says ex-RBI chief Rangarajan
Despite repeatedly calling Prime Minister Narendra Modi his friend, Trump has branded India a “tariff abuser” and imposed a 50 per cent levy on Indian goods, including a 25 per cent punitive duty on Russian oil imports.
- Sep 12, 2025,
- Updated Sep 12, 2025 4:07 PM IST
Former Reserve Bank of India (RBI) Governor C Rangarajan on September 12 hit out at the economic policies of United States President Donald Trump, calling them “self-destructive” and accusing them of bringing global trade to a standstill.
“The world today is in flux. The pursuit of certain economic policies by President Trump has brought world trade to a standstill,” Rangarajan said while addressing the 15th Convocation of Icfai Foundation for Higher Education in Hyderabad.
The former Chairman of the Prime Minister’s Economic Advisory Council warned that India is the worst-hit by such measures. “Hopefully, good sense will prevail and the policy makers in the US will realise the policies they want to pursue are self-destructive. India is the worst hit,” he said.
Rangarajan noted that while some global groupings are working towards freer trade, the long-term goal should be a unified world trading system. He added that India’s ‘Viksit Bharat 2047’ vision is not just statistical but a “transformative journey” requiring collective efforts from both government and society.
India and Brazil have been among the top targets of Trump’s tariff push. Despite repeatedly calling Prime Minister Narendra Modi his friend, Trump has branded India a “tariff abuser” and imposed a 50 per cent levy on Indian goods, including a 25 per cent punitive duty on Russian oil imports. Washington has accused New Delhi of profiting from cheap Russian oil and indirectly funding Moscow’s war in Ukraine—allegations India has firmly denied, insisting that energy security remains its priority.
The Trump administration has also pressed the European Union to impose 100 per cent tariffs on Russian oil buyers India and China.
Amid the standoff, hopes of a breakthrough have re-emerged. Earlier this week, Trump and Modi said they were keen to wrap up trade talks soon, a move that could pave the way for easing tariffs.
Former Reserve Bank of India (RBI) Governor C Rangarajan on September 12 hit out at the economic policies of United States President Donald Trump, calling them “self-destructive” and accusing them of bringing global trade to a standstill.
“The world today is in flux. The pursuit of certain economic policies by President Trump has brought world trade to a standstill,” Rangarajan said while addressing the 15th Convocation of Icfai Foundation for Higher Education in Hyderabad.
The former Chairman of the Prime Minister’s Economic Advisory Council warned that India is the worst-hit by such measures. “Hopefully, good sense will prevail and the policy makers in the US will realise the policies they want to pursue are self-destructive. India is the worst hit,” he said.
Rangarajan noted that while some global groupings are working towards freer trade, the long-term goal should be a unified world trading system. He added that India’s ‘Viksit Bharat 2047’ vision is not just statistical but a “transformative journey” requiring collective efforts from both government and society.
India and Brazil have been among the top targets of Trump’s tariff push. Despite repeatedly calling Prime Minister Narendra Modi his friend, Trump has branded India a “tariff abuser” and imposed a 50 per cent levy on Indian goods, including a 25 per cent punitive duty on Russian oil imports. Washington has accused New Delhi of profiting from cheap Russian oil and indirectly funding Moscow’s war in Ukraine—allegations India has firmly denied, insisting that energy security remains its priority.
The Trump administration has also pressed the European Union to impose 100 per cent tariffs on Russian oil buyers India and China.
Amid the standoff, hopes of a breakthrough have re-emerged. Earlier this week, Trump and Modi said they were keen to wrap up trade talks soon, a move that could pave the way for easing tariffs.