Sachs explained that the Trump administration’s emphasis on applying tariffs on rival governments would not impact the growth of China and Russia if international trade continues to follow WTO rules.
Jeffrey Sachs Labels Tariffs as a Mistake, Disregards Effects in Global Trade
The Trump administration’s tariff move and its subsequent effects on global trade continue to be studied by economists, who are still examining these policies. Jeffrey Sachs, a renowned U.S. economist and professor at Columbia University, has recently criticized the idea of tariffs and the benefits that would supposedly follow their implementation.
During an appearance at the sidelines of the Open Dialogue “The Future of the World: A New Platform for Global Growth” in Russia, Sachs criticized these moves, stating that instead of helping the U.S., they will harm it.
Blasting these protectionist measures, Sachs stated:
President Donald Trump believes that tariffs will help the US economy. I disagree with that — it’s a serious mistake.
Furthermore, he also minimized the effect of these policies on world trade as long as other countries continue to conduct trade according to the World Trade Organization (WTO) rules. “I don’t think it will hurt Russia, China, or other countries that much. And I think the rest of the world can continue to grow and prosper despite this mistake by the U.S.,” he assessed.
Tariffs have become a relevant part of the Trump administration’s plans to bring the country’s economy back on its feet. Trump himself has stated that one possible outcome of this implementation would be to eliminate the income tax, lifting a burden that sits heavily on the wallets of U.S. citizens.
Read more: Trump Vows Tariff Windfall Will Wipe out Income Taxes for Millions
Sachs has been critical of the tariff strategy since day one, calling it “childish and dangerous” and stressing that Trump “wouldn’t pass a basic economics class” with his flawed trade knowledge. He also referred to the tariff percentage list by country as a Mickey Mouse move. “I apologies to Mickey Mouse—he would not do this. Mickey Mouse is smarter than this,” he concluded at the time.
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