'Power Is Power, But the US May Pay a Long-Term Price': Uday Kotak On Trump’s Tarrifs

At a time, when the Indian corporate sector is rattled by US President Donald Trump's tariff imposition, Uday Kotak, a veteran banker and Kotak Mahindra Bank Founder believes that it is the American people that will bear the brunt.  

In a candid and wide-ranging conversation with Republic Media Network Editor-in-Chief Arnab Goswami, Kotak weighed in on Donald Trump's “tariff-driven” foreign policy, cautioning against India getting drawn into the US President’s strategic provocations.
When quizzed about the tariff imposition on Indian goods, he noted, “In the short term, the US may benefit. But in the long run, it will come at a price the United States will eventually have to pay,” affirmed the billionaire, who built the country's biggest private banking firm.

Speaking under the "Legends" series, Kotak offered a realist’s take on the new age of global leadership. "Donald Trump knows what India does not like and he keeps poking that. Hyphenating Pakistan and India is one such example. He knows it irritates Indians," he remarked.

Also Read: 'Stock Market Not A Casino...': Uday Kotak Warns Investors Against 'Cruise Mode' And Speculation | Republic World

Reflecting on America's enduring dominance, Kotak explained that Trump is leveraging longstanding US advantages—from the strength of the dollar and financial system to military might and global economic clout. “Donald Trump has inherited US power. He’s sitting on that seat and using it to full effect.”
 

However, Kotak warned that this aggressive, transactional approach could undermine the very foundations of American supremacy. “Trust is what drives people to put money into the U.S. dollar. That trust takes years to build and can be lost quickly.”

Drawing a larger lesson for India, Kotak stressed that economic strength is the ultimate currency of international diplomacy.

“I genuinely believe that finally, power is power. And India has to dramatically accelerate its efforts to build that power. Economically, we have a lot of catching up to do to turbocharge growth.”

Calling Trump a leader with a "huge ego," Kotak underscored the importance of dealing with such figures tactfully. “We should not fall for his bait. There are areas where we may have to agree, and areas where we need to stand our ground. But either way, we must be clear-headed. Playing to his ego — without compromising our domestic objectives — is going to be an important part of the diplomatic playbook.”

Rise of Strongmen leaders

Kotak highlighted a broader geopolitical trend where so-called "strongmen" leaders are rising across the globe. He pointed to Trump’s hard-line negotiation with Europe, where US goods reportedly got zero-duty access into Europe, while European exports continue to face 15% tariffs in the U.S.  "I don't think the Europeans are happy, but they gave in," he noted.

China remains firm

The only country that has managed to stand firm against Trump, according to Kotak, is China — and that’s because it has something “critical to offer.” "The US needs rare earths and other materials from China. Otherwise, its domestic economy takes a hit," affirmed the veteran banker.

This session was part of Republic Media Network's "Legends" series, an ongoing tribute series celebrating iconic Indians who have shaped the nation through excellence and inspiration. After powerful episodes honouring tennis icon Leander Paes and sarod maestro Ustad Amjad Ali Khan, this edition featured Uday Kotak, a visionary leader who transformed Indian banking and inspired generations of entrepreneurs.

Presented by Ravin Group and co-powered by Radico Khaitan and Reliance Digital, the session explored Kotak’s legacy, his views on India’s entrepreneurial ecosystem, and his belief that sustainable economic growth must be built on enterprise and innovation rather than speculative gains