NDTV Exclusive: India Should Not Do Somersaults To Please Trump Says, Top Economist On Tariffs

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Economist Jeffrey Sachs criticised Trump's trade policies, labelling the US a "Mickey Mouse country." He argues that trade deficits stem from fiscal mismanagement and warns India against making concessions in trade negotiations with the US.
Renowned economist and public policy analyst Jeffrey Sachs has strongly criticised US President Donald Trump's tariff-driven trade policies, calling them emblematic of a 'Mickey Mouse country.' In an exclusive interview with NDTV, Mr Sachs dissected the President's approach to trade deficits, fiscal policy, and its global repercussions.
He emphasised that trade deficits occur when a country, in aggregate, spends more than it produces. He lambasted Mr Trump's understanding of the issue, saying, 'It is dramatically wrong and oversimplified to the point of being ridiculous.'
According to Mr Sachs, the United States is spending beyond its means, largely due to what he termed a 'chronic large budget deficit.' He argued that reducing the trade deficit requires addressing the fiscal imbalance. 'If [Trump] wants to get the trade deficits down, he has to get the budget deficit down,' he said, 'but he seems intent on not doing that.'
Referring to the much-publicised 'Big Beautiful Bill,' Mr Sachs said the legislation includes more tax cuts for favoured recipients, increased military spending, and larger budget deficits — all of which will only exacerbate the trade deficit problem.
Mr Trump has claimed that the trade deficit stems from other countries taking advantage of the US, and in response, imposed a range of tariffs to create what he calls a 'level playing field.' However, the economist warned that such an approach is misguided and potentially harmful for international partners, including India.
India is currently attempting to negotiate a bilateral trade agreement with the US, but Mr Sachs cautioned against making disproportionate concessions. 'I think India has other alternatives and should not do somersaults to try to satisfy the United States in particular,' he said. 'It should not discriminate against its other trade partners. It should not make concessions to the United States that undermine the most favoured nation principle of international trade.' He added pointedly, 'India should watch itself so that it doesn't get sucked into the US game.'
Meanwhile, recent minutes from the US Federal Reserve signal rising concerns about a possible recession. Mr Sachs echoed this sentiment, stating that while the US economy had not been on track for a downturn, it is now facing a 'self-inflicted recession or economic crisis,' brought on by policy missteps and increasing economic uncertainty.
Tensions surrounding Mr Trump's 'Big Beautiful Bill' have also caused a fallout between the president and billionaire entrepreneur Elon Musk, who has called the bill a 'monstrosity.' Commenting on the situation, Mr Sachs remarked, 'Here you have the richest economy in the world, but it just can't behave in a rational way.'
The controversial bill is projected to add at least $2.4 trillion to the US national debt over the next decade, further deepening concerns about the long-term sustainability of its economic policy.

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