Columbia University economist Jeffrey Sachs has warned that recent U.S. tariffs on India could backfire. Speaking on the Breaking Points show, Sachs said the move has pushed India closer to China and helped strengthen BRICS (Brazil, Russia, India, China, and South Africa) against American interests.
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Sachs called the tariffs “the stupidest tactical move in US foreign policy” and argued they were more about politics than strategy. He singled out South Carolina Senator Lindsey Graham for criticism, describing him as a poor voice on trade. Sachs also dismissed former Trump trade adviser Peter Navarro as unqualified, despite his Harvard degree.
Impact on BRICS Unity
The tariffs include a 25% penalty on Indian purchases of Russian oil. According to Sachs, the measure had the opposite of its intended effect. Rather than isolating Russia, it brought BRICS members into closer coordination.
He noted that within two days of the announcement, leaders from BRICS countries were on calls working more closely together. China, which buys more Russian oil than India, was not targeted by similar tariffs. This uneven approach drew criticism from former U.S. officials as well. John Bolton, who served as Trump’s National Security Adviser, called the move a mistake that weakened trust with India.
Tariffs Put Trade, Tech, and Defense at Risk
Beyond trade, Sachs warned of long-term damage to relations. The U.S. has spent years building ties with India as part of its Asia strategy. However, he argued the tariffs risk undoing that progress. Sachs said India now views the U.S. as unreliable, regardless of whether the penalties are lifted.
If U.S.-India ties continue to weaken, the impact could spread across industries on both sides. Apple (AAPL) may face higher costs for its India-based manufacturing, while Microsoft (MSFT), Google (GOOG), and Amazon (AMZN) could see pressure on their Indian hubs that rely on local talent. Also at risk are Indian exporters in textiles, gems, jewelry, auto parts, and foodstuffs face tariffs on goods worth $48.2 billion.
At the same time, defense and technology cooperation between firms such as Lockheed Martin (LMT), Boeing (BA), and Indian defense groups could lose momentum if trust erodes. These risks threaten supply chains, exports, and investment across the $200 billion trade relationship. The warning comes as US policy focuses on countering China’s influence in Asia. If ties with India continue to sour, analysts suggest Washington may face a key question: who lost India?
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