Trump's Playing Victim Card, But Economy Of US Gives Us Different Picture: Suresh Prabhu

US President Donald Trump levying up to 50% of tariffs on Indian exports is not surprising and should not come as a shock, said former Union Trade and Commerce minister Suresh Prabhu on Wednesday. He said that in imposing the "illogical" tariffs, Trump is hurting the US economy as well. "Trump is playing the victim card now," he said.

Prabhu was speaking virtually before a panel discussion on 'What lies ahead for Indian businesses' organised by Great Lakes Institute of Management, Gurgaon.

Prabhu explained how the US is playing the "victim card". "I dealt with the Trump administration when I headed the Commerce ministry. This [tariff] is not surprising or shocking. This undoing what happened over a long period."

"The world economy is growing at a fast pace. By law of nature, some will gain, some will lose... President Trump says the US is a victim of the global trading system. Going by the trade deficit, the argument holds. But if we go by the general economy of the US, it gives us a completely different picture," he said.

He pointed out that more than 85% of the US economy is driven by consumption, not savings. "The more consumers buy, the more the GDP grows. Now, consumers prefer foreign goods because they are cheaper and better than the goods produced in the US. That's how the trade deficit increased," Prabhu said.

He also slammed US's claims of being the "victim", saying: "Trade is what helped the world economy grow... Trump is saying everything should be made in the US. That policy is flawed. What is the point of levying tariffs on components of, say, Tesla cars or Boeing aircraft? The idea is very shortsighted.

Former Rajya Sabha MP Swapan Dasgupta, who was part of the panel discussion, said, "This [Trump's tariff war] is not economics. It's politics. Trump has even bludgeoned the European Union, one of the 'preachiest' entities in the world. It thought of itself as the torchbearer of good. Trump simply browbeat them."

He added, "India must take into account that Trump is steamrolling his way through.  He won't back down until he faces a setback."

Jones Mathew, principal of Great Lakes Gurgaon, remarked, “Trump's tariff imposition threatens sectors like textiles, gems and jewellery, carpets, and agricultural exports, with analysts warning of up to a 70% drop in US sales. Moody’s noted these tariffs could slow our manufacturing ambitions and growth. Yet, this crisis has strengthened India’s resolve toward diversification, reform, and strategic autonomy."

india