Washington | August 9, 2025 : US President Donald Trump is “destroying himself” by waging an aggressive trade war against the rest of the world, including India, leading American economist and Johns Hopkins University Professor Steve Hanke told NDTV in an exclusive interview.

Hanke described Trump’s recent decision to impose steep tariffs as “absolutely rubbish” and “resting on sand,” arguing that the economic reasoning behind it is fundamentally flawed. “The economics is just all wrong,” he said.

His comments come amid rising tensions between Washington and New Delhi after the US escalated its tariff on Indian goods to 50 percent. On Wednesday, Trump first imposed an additional 25 percent duty before doubling it, targeting sectors such as textiles, marine products, and leather exports. The move was reportedly in response to India’s continued imports of Russian oil.

India has sharply criticised the decision, calling it “unfair, unjustified, and unreasonable.” Prime Minister Narendra Modi vowed that New Delhi would not yield to economic pressure. With the latest hike, India now faces the highest US tariff rate alongside Brazil.

‘Keep Your Cards Close to the Chest’
Hanke urged Indian leaders to remain patient. “In the case of India, Prime Minister Narendra Modi and External Affairs Minister S Jaishankar should keep their cards close to the chest and wait for a little while. I think Trump’s house of cards will collapse,” he said.

Quoting Napoleon’s advice — “never interfere with an enemy in the process of destroying oneself” — Hanke argued that the tariffs will ultimately harm the US economy more than its trade partners. He pointed to America’s large trade deficit, noting that domestic spending exceeds its gross national product.

Global Pushback
The tariff escalation has drawn condemnation from multiple countries. Kremlin spokesman Dmitry Peskov criticised Washington’s pressure on nations to cut ties with Russia, calling it “illegal.”

China also took aim at the move, with Chinese Ambassador to India Xu Feihong remarking: “Give the bully an inch, he will take a mile. Using tariffs as a weapon to suppress other countries violates the UN Charter, undermines WTO rules and is both unpopular and unsustainable.”

Trump Stands Firm
Despite the backlash, Trump has doubled down. Earlier on Friday, he ruled out trade negotiations with India until the tariff dispute is resolved. Later, he warned of a “1929-style Great Depression” if a US court rules against his tariff policies.

On Truth Social, Trump claimed that tariffs are boosting the US economy. “Tariffs are having a huge positive impact on the Stock Market. Almost every day, new records are set. In addition, hundreds of billions of dollars are pouring into our country’s coffers,” he wrote, adding: “Our country deserves SUCCESS AND GREATNESS, NOT TURMOIL, FAILURE, AND DISGRACE. GOD BLESS AMERICA!”

For now, the standoff shows no signs of easing, with both India and the US signalling that they will hold their ground in what could become one of the most consequential trade disputes of the decade.