Tariff wars are lose-lose, hurt consumers: Luxembourg's Bettel

Luxembourg's Deputy Prime Minister and Foreign Minister, Xavier Bettel, is on a three-day official visit to India, during which he met External Affairs Minister S. Jaishankar on Monday. Following the talks, Jaishankar noted that "trusted partnerships" between the two nations have gained "great relevance in times of global uncertainties and disruptions."

Bettel, who served as Luxembourg's Prime Minister from 2013 to 2023, first held a virtual summit with Prime Minister Narendra Modi in November 2020 during the Covid-19 pandemic. He recalled that during that call, Modi helped resolve a bureaucratic hurdle for a Luxembourgish company involved in vaccine cooling that wanted to open a factory in India, praising what he called "Indian efficiency."

Since then, cooperation has expanded into logistics, finance, and education, with hundreds of Indian students now studying in Luxembourg. In his recent discussions, Bettel highlighted areas for collaboration including artificial intelligence, space, satellites, and fintech. He noted the presence of a large Indian community in Luxembourg and the success of Indian companies there.

On trade, Bettel stressed the importance of the recently agreed India-EU Free Trade Agreement as a framework to build upon. He said both Indian and Luxembourgish companies need to be made aware of new opportunities, particularly in payments and licensing within the European market.

Addressing global tariff tensions, Bettel described tariff wars as a "lose-lose situation," arguing that they ultimately make goods more expensive for consumers. He warned that escalating tariffs destroy jobs and economies, with the middle class bearing the brunt. He expressed a desire for the World Trade Organization to resume constructive dialogue.

Ahead of the BRICS Summit in India, which Russian President Vladimir Putin is set to attend, Bettel was asked about the Russia-Ukraine conflict. He asserted that Russia is the aggressor and that history cannot be rewritten. While appreciating India's engagement with both Moscow and Kyiv, he said Putin will have to justify the war's continued toll. On India's purchase of Russian energy, Bettel said alternatives should be preferred while the war continues, though he acknowledged the need for viable options.

Commenting on the rise of anti-immigration sentiment in parts of Europe and the US, Bettel argued that migration is a historical reality and that the focus should be on regulated migration. He cautioned against blaming voters for supporting populist parties, suggesting that mainstream politics must find better answers to public concerns about insecurity, housing, and the future.