Mr Sachs emphasised that trade deficits occur when a country, in aggregate, spends more than it produces. He lambasted Mr Trumps understanding of the issue, saying, "It is dramatically wrong and oversimplified to the point of being ridiculous.

In April, India imposed a 12% temporary tariff on some steel imports, locally known as a safeguard duty, to curb a surge in cheap shipments primarily from China.

India weighs legal challenges to Trump tariffs as it begins trade pact talks with the US this week. Uncertainties around tariffs and a potential interim deal are key concerns.