Clashing Policies: The Impact of Trump's Tariffs and Visa Fees on U.S.-India Trade Relations

Harvard economist Kenneth Rogoff sharply criticized the Trump administration's high tariffs on countries like India and increased H-1B visa fees, underscoring their negative impact on U.S. economic growth. Rogoff emphasized the necessity of liberal visa policies for skilled workers, especially those from India, who significantly contribute to the U.S. tech sector.

The increased H-1B visa application fee, implemented amid stalled U.S.-India relations, affects over 70% of Indian nationals granted these visas. Rogoff argued that cutting this talent pool could severely hinder the U.S. economy. He also called the visa fee hike a blunder, urging an expansion in the visa number.

Discussing global trade dynamics, Rogoff warned about the long-term consequences of the U.S. tariffs, advocating for a cohesive international response. Despite challenges, he acknowledged India's potential in the global service sector and stressed the need for domestic reforms and reduced tariffs for broader economic integration.

(With inputs from agencies.)