Title: Modi & Trump giving their economies self-inflicted wounds: Jairam
The global markets witnessed a sharp decline on Friday, with the Sensex opening over 3,900 points lower and the Nifty opening over 1,000 points below. The reason behind this sudden downturn was the White House’s announcement of tariffs on Chinese goods, which triggered a global trade war. Amidst this chaos, Congress leader Jairam Ramesh criticized Prime Minister Narendra Modi and US President Donald Trump, stating that both are experts in giving their economies self-inflicted wounds.
Ramesh took to social media to express his concerns, saying, “It’s no wonder that Mr. Modi and Mr. Trump describe themselves as good friends. Both are experts in giving their economies self-inflicted wounds.” His statement comes at a time when the global economy is already struggling to recover from the impacts of the COVID-19 pandemic.
The announcement of tariffs by the White House was seen as a significant escalation in the ongoing trade tensions between the US and China. The move was widely anticipated, but its timing has raised concerns among investors and economists. The tariffs are expected to increase costs for American consumers and businesses, which could have a ripple effect on the global economy.
India, being one of the largest recipients of Chinese goods, is likely to be severely impacted by the trade war. The country’s economy is already struggling to recover from the pandemic-induced slowdown, and the tariffs are expected to add to the woes. The Sensex and Nifty’s sharp decline on Friday is a testament to the fears of investors, who are worried about the potential consequences of the trade war.
Ramesh’s criticism of Modi and Trump is not unfounded. Both leaders have been known for their protectionist policies, which have raised concerns about the impact on global trade. Modi’s “Make in India” initiative, aimed at promoting domestic manufacturing, has been criticized for being protectionist. Similarly, Trump’s “America First” policy has been seen as a attempt to reduce the country’s dependence on foreign trade.
The trade war between the US and China is not a new phenomenon. Trump had imposed tariffs on Chinese goods in 2018, which was met with retaliatory measures from Beijing. However, the recent escalation of the trade war has raised concerns about its potential impact on the global economy.
The global economy is already facing several challenges, including the pandemic-induced slowdown, Brexit, and the risk of a no-deal trade agreement between the US and China. The tariffs are expected to increase costs for businesses, leading to reduced production and employment. This could have a ripple effect on the global economy, leading to a recession.
In the context of India, the trade war is likely to have a disproportionate impact. The country’s economy is heavily reliant on exports, particularly in the sectors of textiles, pharmaceuticals, and Gems and Jewelry. The tariffs are expected to increase costs for Indian exporters, making it difficult for them to compete in the global market.
Ramesh’s criticism of Modi and Trump is not limited to their economic policies. He has also criticized their handling of the pandemic, saying that their policies have been ineffective in containing the spread of the virus. The pandemic has had a devastating impact on the global economy, and it is imperative that governments take effective measures to contain its spread.
In conclusion, Jairam Ramesh’s criticism of Modi and Trump is well-founded. Both leaders have been known for their protectionist policies, which have raised concerns about the impact on global trade. The trade war between the US and China is a significant escalation in the ongoing tensions, and it is imperative that governments take effective measures to contain its spread. The global economy is already facing several challenges, and it is crucial that governments work together to promote free and fair trade.
Source: https://x.com/Jairam_Ramesh/status/1909116322992009326
