Jeffrey Sachs Calls Trump 'Psychologically Unstable' Over Tariff Policy

New Delhi: Renowned American economist and UN advisor Jeffrey Sachs launched a scathing attack on US President Donald Trump in an exclusive interview with Republic Media Network's Editor-in-Chief Arnab Goswami. Reacting to a fresh 500% tariff threat, Sachs called Trump “psychologically unstable” and warned that the United States is no longer functioning under a constitutional order.

This comes after Donald Trump gave the green light to the Russia Sanctions Bill to punish those who buy uranium or petroleum products from Russia. According to the draft bill, 500% tariffs can be slapped on all goods and services imported into the United States from countries that knowingly engage in the exchange of Russian-origin uranium and petroleum products.

The bill, if imposed, will have serious economic consequences for India. The US government said the bill would give Trump tremendous leverage against countries like China, India and Brazil to incentivise them to stop buying the cheap Russian oil that provides the financing for "Putin’s bloodbath against Ukraine". This comes amidst the Russia-Ukraine war, that Trump is adamant about stopping.

'With Trump, Things Are Out Of Control'

Republic Media Network Editor-in-Chief Arnab Goswami asked Jeffrey Sachs whether Trump was really likely to take such a drastic step of imposing 500% tariffs. In response, Sachs said, “With Trump, things are out of control. He's invading countries, he's threatening countries, he left more than 50 treaties and UN organisations today. He's a psychologically unstable person in a political system that has broken down in the United States, so we don't have constitutional control.” 

'Trump Has Grossly Abused His Power'

Referring to the upcoming hearing of the US Supreme Court on the legality of the tariffs imposed by the Trump government, Sachs said, "Tomorrow, it is said that the Supreme Court might rule on the legality of Trump's overall tariff system, if the court is honest, which is a big assumption, of course, in the US these days, but if the court turns out to be honest, it will strike down all of what has happened up until now, because Trump has grossly abused his power. This is unconstitutional, what he has been doing. It is illegal, but he's gotten away with it because we are not in a constitutional order in the United States right now. We are in some combination of rule by the security apparatus and a very, in temperate, president."

Last year, Trump declared April 2 as ' Liberation Day' and used the International Emergency Economic Powers Act of 1977 to impose tariffs on imports from more than 100 countries. Trump's decision led to a global market crash. The US Supreme Court is scheduled to issue a ruling over the legality of Trump's decision on Friday. Hundreds of companies, including Reebok and Costco, have sued the Trump administration, seeking refunds of import duties.

US Tariffs On India

In July 30, 2025, Trump had announced a 25% tariff on Indian imports, followed by an additional 25% duty in August, taking total tariffs on several Indian exports to around 50%. Although Trump hinted later that the tariffs could be lowered if India curtailed Russian oil and uranium purchases, no breakthrough was reached.

Recently, Trump admitted that Prime Minister Narendra Modi is "not that happy" with him due to the tariffs imposed by the United States on Indian companies.