"Don't Think US Top Court Will Do Much": Abhijit Banerjee To NDTV On Legal Fight Over Tariffs

US President Donald Trump has reignited debates over global trade and geopolitical alignments, with controversial comments on India and Russia, alongside a high-stakes legal battle over his sweeping tariffs. 

NDTV spoke exclusively to Nobel Laureate Abhijit Banerjee to shed light on what these developments could mean for India and international trade.

Mr Banerjee was asked about Mr Trump's decision to take his trade tariff dispute to the US Supreme Court. A lower court ruling had already struck down the majority of his tariffs, which could have cost billions and hit countries like India the hardest, with tariffs reportedly as high as 50%.

When asked about the potential significance of the Supreme Court case, Mr Banerjee expressed measured scepticism. 

“I'm mostly not convinced that the Supreme Court will do very much. I think the first, I'm not even sure they will overturn the executive's action. They tend to be very protective of the executive's choices. And second, I think there are many other ways in which President Trump could continue as he has in many situations, just found other ways to get to the same thing. So I'm pessimistic that unless he wants to change the policy, they will be changed,” he said.

On Mr Trump's comments about India being “lost” to China, Mr Banerjee said they would have a limited direct impact on trade. “I think directly they're going to do relatively little because we have very different trade patterns vis-a-vis the US and China, and it's not easy to pivot.”

On September 5, Mr Trump, on Truth Social, said both India and Russia appear to have been “lost” to China following meetings between their leaders and Chinese President Xi Jinping this week. 

He wrote, “Looks like we've lost India and Russia to the deepest, darkest, China. May they have a long and prosperous future together!” The post was accompanied by a photograph of the three leaders together at Xi's summit in China. 

The comments followed the SCO summit in Tianjin, where Prime Minister Narendra Modi and Russian President Vladimir Putin were pictured walking hand-in-hand with Xi. 

Mr Trump's remarks have raised questions about the future of US-India ties amid shifting global power dynamics.

Meanwhile, Mr Banerjee also said that India could use this moment to reconsider its stance on joining the Regional Comprehensive Economic Partnership (RCEP). Being part of a larger trade grouping that includes not only China but also countries like Japan and Australia could provide strategic benefits. It would reduce India's direct dependence on China and lessen its vulnerability to Chinese influence, he said.

When asked about breaking the stalemate between India and the US, Mr Banerjee admitted uncertainty. “I don't know the answer to that question. I think this idea is very much in the media that we've somehow offended President Trump by resisting the idea that he made peace (during the India-Pakistan conflict in May). If that's the truth, I don't know what we can do. I mean, if we really don't think that's the truth, we're stuck a bit on that.”

On the possibility of a phone call between Mr Trump and PM Modi, Mr Banerjee recommended maintaining open communication while weighing the risks. 

“We should always keep lines open. I don't see a reason not to do that phone call. The question is whether or not that will make things worse or better. The question is whether the phone call will lead Mr Trump to lean even heavier on the peace issue and then will we be put in an even more uncomfortable position. That, I think, is the reason why the Indian government has been hesitating.”