"Trump Destroying Himself": Top US Economist Steve Hanke to NDTV on Tariff War With India

Published: August 9, 2025

American economist and Johns Hopkins professor Steve Hanke didn't mince words in a short interview with NDTV — saying US President Donald Trump is “destroying himself” by launching an aggressive tariff campaign against trading partners, including India. Hanke told NDTV that the tariff escalation risks isolating the US economically and could backfire politically at home.

What He Said, In Context

Hanke’s comments came as the US moved to sharply raise duties on a range of Indian goods, a step that New Delhi has vowed to challenge through diplomatic and trade channels. In the NDTV clip, Hanke argued the tariffs are likely to provoke retaliation, disrupt supply chains and squeeze American consumers and exporters — a dynamic that, in his view, undermines the administration’s own economic standing.

Why This Matters

Tariff wars are rarely contained. When major economies slap on heavy duties, companies on both sides can lose competitiveness, and consumers typically face higher prices. Observers say that beyond immediate trade losses, such moves can push countries into new trade alignments — for instance, strengthening ties between India and other non-US partners — which is exactly the risk Hanke highlighted. Financial markets have already shown signs of nervousness in recent days after the announcements.

Reactions From India and the World

New Delhi has publicly condemned the tariff hikes and signalled reciprocal measures. Indian officials say they will defend exporters and work with like‑minded partners to mitigate damage. Analysts note that while short-term pain is likely, India could also accelerate diversification of markets and deepen ties with regions like Europe, ASEAN and the Middle East. Meanwhile, global commentators are split — some call for rapid negotiations to de‑escalate, others see room for longer-term strategic realignment. 

What to Watch Next

• Whether the US and India enter formal trade talks or pursue litigation at the WTO.
• How exporters — especially in textiles, engineering goods and food — respond to higher duties and lost orders.
• Market moves: currency volatility, export orders and sectoral stock performance in India and the US.

Bottom Line

Steve Hanke’s blunt assessment captures a broader worry among many economists: trade wars can inflict damage that reverberates beyond headline political wins. Whether the current tensions cool down through diplomacy or escalate into a longer confrontation will determine the real economic cost — and, possibly, the political fallout for leaders who wager on tariffs as a policy tool.

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Sources: NDTV video and article, The Guardian, Financial Times, and related coverage. For the original NDTV interview, click the video above.