US Tariffs on India Could Backfire, Warns Economist
American economist Richard Wolff has sharply criticised the United States’ decision to impose steep tariffs on Indian exports, warning that the move is more likely to harm Washington’s own strategic position than New Delhi’s. Speaking in an interview with Russia Today, Wolff likened the action to “a mouse hitting his fist to an elephant,” arguing that India has the economic weight and partnerships to withstand such measures.
The tariffs, which took effect on Wednesday, doubled existing duties on several Indian goods to 50 percent. The move was pushed forward by US President Donald Trump as part of his pressure campaign against New Delhi for continuing to purchase Russian oil. Washington has long sought to restrict Moscow’s revenue streams amid the war in Ukraine, and Trump has threatened harsher actions if India and its partners expand their economic ties with Russia.
Economist RIchard Wolff tells RT that America is "hothousing" BRICS with its aggressive tariff threats.
"If you shut off the US to India by big tariffs, it will have to find new places to sell its exports.
Just like Russia found new markets, India will sell its exports not to… pic.twitter.com/xEO4lGp0zS
— Margarita Simonyan (@M_Simonyan) August 28, 2025
India’s Strategic Alternatives in BRICS
According to Wolff, the US tariffs will only accelerate India’s pivot towards BRICS, the ten-nation bloc comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. The grouping, initially formed as a loose economic alliance, has increasingly presented itself as an alternative to Western-led financial institutions and is actively exploring a common settlement mechanism to reduce dependence on the US dollar.
Wolff noted that India, like Russia after Western sanctions, would quickly find alternative markets. “Just as Russia found other places to sell its energy, India will shift its exports away from the United States and toward the BRICS nations,” he explained. He emphasised that far from isolating India, Washington’s policies were instead encouraging a stronger integration of emerging economies.
A Shift in Global Economic Power
Highlighting the shifting balance of global economic power, Wolff observed that the BRICS collectively account for about 35 percent of global output, compared to the G7’s share, which has declined to roughly 28 percent. “We are watching a historic moment,” he said, stressing that American tariffs may unintentionally nourish BRICS into becoming a more integrated and viable counterweight to Western dominance.
Trump, however, has consistently dismissed the bloc, describing it as a “little group fading out fast.” In February, he even declared “BRICS is dead” and warned that any attempt to introduce a joint currency would be met with 100 percent tariffs from the US. “They can go find another sucker Nation,” Trump remarked at the time.
Longstanding Ties Under Strain
India and the US have cultivated a closer partnership over the past two decades, marked by defence cooperation, technology transfers, and growing trade. However, Wolff pointed out that New Delhi’s independent foreign policy roots stretch back to the Soviet era. “The United States is playing with a very different adversary here,” he cautioned, suggesting that Washington’s heavy-handed approach overlooks India’s historic insistence on maintaining strategic autonomy.
New Delhi has already condemned the tariff hike, calling it “unfair, unjustified, and unreasonable.” Indian officials have hinted at possible countermeasures while simultaneously strengthening trade ties with other regions, including the Middle East, Africa, and Southeast Asia.
Shooting Itself in the Foot
Wolff concluded that the US stance reflects a misplaced attempt to project toughness but risks undercutting its own global influence. “For those with some humour, it will be the spectacle of the United States acting like it’s the world’s tough guy, while actually shooting itself in the foot,” he said.
As the global economy undergoes realignment, analysts suggest that measures like these could accelerate the erosion of US-led financial dominance and reinforce the BRICS bloc’s appeal as a credible alternative for emerging economies. The outcome, they argue, may leave Washington more isolated at a time when multipolarity is rapidly reshaping international trade and politics.
