Donald Trump's tariff policies have created waves of chaos globally, especially souring relations with countries like India and China. Imposing a 25% tariff on India with an impending extra 25% to follow on August 27, Trump’s actions have drawn intense critique from American economist Steve Hanke.
Former advisor to President Ronald Reagan and noted economist Steve Hanke has commented that Trump's tariffs are just the beginning, with more severe consequences to come. In a compelling interview, Hanke issued a warning that Trump’s trade policies, his distancing from India, and his friendly stance towards Pakistan could lead to economic and geopolitical turmoil.
Trump: The Morning Handshake, Night Stab
Hanke candidly noted that Trump is a man who can extend a handshake to Modi in the morning and metaphorically stab him in the back by nightfall. He argued that India can't rely long-term on American warmth, suggesting that China holds more sway, boasting significant strengths in mining, metallurgy, and physics, dominating in all three.
Why Trump's Favor towards Pakistan?
Hanke also discussed how China's influence has pressured Trump into reconsidering alliances. He speculates that Trump's pivot from India to Pakistan aims to bring Pakistan back into the geopolitical picture. But why the sudden shift? Is Pakistan a stable economy right now? According to Hanke, geopolitics, not economics, is the driver. Pakistan’s field marshals have visited America twice last month, hinting at preparations for another attack or a potential conflict with Iran.
America on the Brink of a Recession
Hanke described the tariffs as a hidden tax on American consumers, the burden of which falls entirely on Americans purchasing Indian goods, inflating prices. He warned that these rising costs could have far-reaching effects.
Over the past two and a half years, the American currency has weakened considerably, prompting Hanke to observe that the economy is teetering. His ominous warning: America is on the brink of recession, driven by Trump's policies leading towards disaster.
Grave Allegations by an American Diplomat!
Interestingly, American diplomat Peter Navarro alleged that India profits by selling goods to us, then uses that money to buy Russian oil, which gets processed in refineries, making significant profits. Additionally, Navarro labeled India as Russia's 'laundry machine' and the 'emperor of tariffs.'
