Raghuram Rajan Claims US Tariffs on India Linked to Trump's Ego, Not Russian Oil Imports

Raghuram Rajan's recent comments regarding US tariffs on India have sparked significant controversy across social media platforms.

According to former Reserve Bank Governor Raghuram Rajan, the substantial 50 percent tariff imposed on Indian goods by the Trump administration was not primarily due to India's import of Russian oil. A viral video shows the prominent economist suggesting that these punitive tariffs were instead connected to India's response to Donald Trump's statements about the military truce with Pakistan following Operation Sindoor.

During an event at the University of Zurich, Rajan asserted that the US implemented the hefty tariff because India declined to endorse Trump's version of events, whereas Pakistan received a lower 19 percent tariff for "playing along" with Trump's narrative. This December 4 clip has generated considerable backlash online, with numerous internet users accusing Rajan of "twisting the truth" and "undermining India's position" to rationalize US trade actions.

In his remarks, Rajan stated, "Russian oil wasn't the issue... I think the central issue was more personalities, especially a personality in the White House and how they treated certain comments made by India after Trump claimed credit for stopping a conflict between India and Pakistan... Pakistan played it right...said that it was all because of Trump." He was referring to the May conflict that erupted following the Pahalgam terrorist attack.

India had launched Operation Sindoor as a response to the Pahalgam attack, targeting terrorist infrastructure within Pakistan. This military operation briefly escalated into a conflict between the two neighboring nations.

Rajan continued, "India tried to argue that the two countries had reached an agreement without Trump... the truth is probably somewhere in between... But the net effect was that India got 50 percent tariffs, and Pakistan got 19 percent. I understand that there was some comment about how your leader in Switzerland tried to explain the tariffs to Trump and that didn't go well... so we don't know what really happened between India and the US, but hopefully in the longer run sanity prevails on all sides and we all reach reasonable deals."

When the conflict with Pakistan was at its peak, a ceasefire was announced on May 10. Trump subsequently claimed credit for this ceasefire, stating that his intervention ended the war. India, however, has consistently maintained that the cessation of hostilities was achieved after Pakistan's Director General of Military Operations initiated direct communication with his Indian counterpart to discuss the matter.

While Pakistan initially denied this account, it later accepted Trump's version and even nominated him for the 2026 Nobel Peace Prize, citing his "decisive diplomatic intervention and pivotal leadership during the recent India-Pakistan crisis."

Rajan's interpretation of these events has faced significant criticism online. Many social media users argue that India rightfully stood its ground by refusing to accept what they consider a false narrative, while Pakistan publicly attributed the ceasefire to Trump's efforts.

One social media user commented, "India paid higher tariffs because it refused to bow politically, prioritising national interest over appeasing global powers."

Another critic of Rajan's position wrote, "Truth is lying in between? Sorry Mr. Raghuram Rajan, the truth is not lying in between, but the truth is with India. The boot licker Pakistan played the appeasement tactics to please Trump. This tactic immediately rewarded them by lower tariff - just 19% while tariff on India is 50%. Future will tell how much costly would be this 19%."

Some users even questioned the relevance of Rajan's comments altogether, with one remarking, "Even a broken clock is correct twice in a day... he needs to keep trying. Some day he will make sense."