Trump 'misplayed his hand' with India: Ex-Australian PM Tony Abbott criticises US tariffs

Australia's former prime minister Tony Abbott (Photo by Oli SCARFF / AFP)

Former Australian Prime Minister Tony Abbott has criticised United States President Donald Trump for what he described as a strategic misstep in Washington’s relations with India. Speaking at the NDTV World Summit, Abbott said Trump’s decision to impose steep tariffs on Indian imports had undermined a key partnership at a time when global alliances were being reshaped.

“I am a supporter of President Trump, but I think he misplayed his hand with India recently when he imposed those punitive tariffs, particularly given there are other countries that are cheating here, especially China, that didn’t get the same kind of treatment,” Abbott said.

He argued that the United States’ long-term interests were better aligned with India, a fellow democracy, than with nations such as Pakistan. “America’s fundamental interests lie in a strong friendship with India compared to Pakistan,” Abbott noted, adding, “India’s fundamental interests lie in a strong partnership with fellow democracies much less than with dictatorships.”

Abbott cautioned that while the tariff decision had set back bilateral ties, it was unlikely to cause lasting damage. “I think this (tariffs) is a serious setback. But given the fundamental community of interest and values that India does have with the democracies, I think it will only be a temporary setback, but let’s hope that this can be remedied very quickly,” he remarked.

The comments come amid heightened trade tensions between New Delhi and Washington. In August, the Trump administration raised tariffs on Indian goods to 50 per cent, including a 25 per cent penalty for India’s continued energy imports from Russia.

Meanwhile, India’s economic leadership has continued to project confidence despite the global volatility caused by tariffs and trade restrictions. Reserve Bank of India Governor Sanjay Malhotra said on Friday that India’s economic resilience owed much to the coordination between fiscal and monetary authorities.

Speaking during a discussion with Krishna Srinivasan, Director of the Asia and Pacific Department at the International Monetary Fund (IMF), Malhotra said that fiscal consolidation and close cooperation between policymakers had helped India manage inflation while sustaining growth.

“A coordinated effort with the fiscal authorities, identifying what the pressure points are, both on the demand side and supply side, and this coordinated action really helped us,” Malhotra said.

The remarks were made during the IMF’s Annual Meetings, where global economic leaders discussed the growing challenges posed by protectionist policies and trade fragmentation.