In an exclusive interview with CNBC-TV18, Sachs questioned the legal and political durability of President Donald Trump’s tariff policies and warned against India making disproportionate concessions during ongoing trade discussions.
“Trump needs India more than India needs the United States,” Sachs said.
His comments come as both countries continue negotiations on a trade agreement and officials suggest that only a limited set of issues remains unresolved.
Sachs argued that India’s negotiating position is stronger than is often portrayed and said policymakers should not assume that tariff threats from Washington carry unquestioned authority.
He pointed to legal challenges faced by the Trump administration over tariffs, noting that US courts had already raised questions about the President’s authority to impose some measures.
“Donald’s Trump’s tariffs are illegal. The Supreme Court ruled them illegal,” Sachs said.
According to Sachs, the administration responded by invoking alternative legal provisions, which also became subject to judicial scrutiny.
He said this uncertainty should make countries negotiating with Washington more careful about surrendering market access or offering asymmetrical trade concessions.
“You’re playing with a guy who doesn’t even hold the cards,” Sachs said.
Sachs maintained that Trump’s tariff agenda has been economically flawed and politically driven rather than rooted in long-term trade strategy.
He advised India to secure a deal only if it serves domestic economic interests and preserves policy flexibility.
“Strike a good deal,” he said, adding that India should not feel pressured into agreements that disproportionately favour US demands.
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The economist also linked trade diplomacy to broader geopolitical calculations, suggesting that Washington’s renewed engagement with India reflects strategic necessity as much as economic cooperation.
For India, he argued, the priority should remain protecting its own economic interests while maintaining independent relations with multiple global partners.
Sachs said India’s expanding economic scale and growing strategic importance give it greater leverage than many policymakers may recognise during negotiations with Washington.
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