More than 970 Economists Oppose Trump's Tariff Policies
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Synopsis
On April 21, 2023, over 970 individuals, including leading economists, signed an anti-tariff declaration opposing the tariff strategies of President Trump, labeling them misguided and warning of potential economic downturns.
Key Takeaways
- Over 970 economists signed an anti-tariff declaration.
- The declaration criticizes Trump's tariffs as misguided.
- It warns of potential self-inflicted recession.
- Signatories include Nobel laureates.
- They urge an end to incoherent trade policies.
Beijing, April 21 (NationPress) More than 970 individuals, including numerous esteemed economists from around the globe, have endorsed an "anti-tariff declaration" that criticizes the tariff policies implemented by US President Donald Trump. They describe these policies as "misguided" and caution against a possible "self-inflicted recession", according to various media reports.
This letter, which features signatures from notable economists such as Nobel Prize winners James Heckman and Vernon Smith, was shared over the weekend, and by early Sunday, it had garnered the support of 976 signatories.
In the "Trade and Tariffs Declaration: A Statement on the Principles of American Prosperity", the authors condemned Trump's "reciprocal" tariffs that impact over 180 countries and regions worldwide. The letter indicates that these "reciprocal" tariff rates are "calculated using a flawed and improvised formula without any economic foundation".
On April 2, Trump declared extensive tariffs against US trading allies, labeling the day "liberation day". However, just a week later, he announced a 90-day suspension of the highest tariffs while maintaining a 10 percent baseline rate for the majority of countries, as reported by Xinhua news agency.
Trump's tariff strategy has led to significant sell-offs in stock markets and prompted retaliatory tariffs and other counteractions from various nations. The letter warns, "We expect American workers will bear the brunt of these misguided policies through rising prices and the threat of a self-inflicted recession".
Although Trump contends that these tariffs aim to rectify a chronic trade deficit and bolster the US manufacturing sector, the authors argue that "the current administration's tariffs are based on a flawed perception of the economic realities faced by average Americans".
The signatories called for an end to Trump's "incoherent and damaging policies", expressing hope that "sound economic principles, empirical evidence, and historical warnings will triumph over the protectionist myths of the current moment".
