NEW DELHI – In a sharp critique of the new India-US trade agreement, renowned economist Jeffrey Sachs told NDTV on February 5, 2026, that the deal signals a “retrenchment” of President Donald Trump’s aggressive trade policies. Sachs dismissed several of Trump’s claims regarding the deal as “bluster” and “untrue.”
On the Trade “Reset” and Tariffs
Sachs characterized the reduction of US tariffs on Indian goods—from 50% to 18%—as a concession by Washington rather than New Delhi.
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A Strategic Blunder: He called the original 50% tariffs a “blunder” that violated strategic principles and served only to isolate the U.S.
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Trump’s Retrenchment: “Trump is backing down from his trade wars all over the world,” Sachs stated, suggesting the president’s initial “guns blazing” approach had failed.
On the $500 Billion Investment Claim
Trump recently claimed Prime Minister Modi pledged $500 billion in US investments across energy and tech. Sachs was highly skeptical:
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“Not Honest”: Sachs dismissed the figure, stating, “I don’t think anything Trump says is honest… it has no basis in substance.”
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Economic Life: He argued such headlines are designed for optics and do not reflect real-world economic commitments.
The Russian Oil Factor
Despite White House claims that India has committed to halting Russian oil purchases, Sachs argued that New Delhi remains focused on its own interests.
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No UN Sanctions: He noted that Russian oil sanctions are US-driven, not UN-mandated. “The US does not have the right to dictate world trade terms,” he said.
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BRICS Sovereignty: Sachs urged BRICS nations to remain united, telling the U.S. to “keep your sanctions to yourself” while trading according to their own national priorities.
India’s Future: Looking East, Not West
Sachs warned India against over-reliance on the US market, noting that the United States accounts for only about 12% of global trade and is a slow-growing economy.
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Regional Growth: He emphasized that India’s real opportunities lie in Southeast Asia, Western Asia (the Gulf), and Africa.
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China Ties: Sachs argued that India and China should be trading partners rather than rivals in a US-led value chain.
