Jeffrey Sachs warned that the Trump administration’s potential future secondary sanctions on China’s trade relations with Russia could lead to a catastrophe for the U.S. economy. Sachs believes that the world would turn its back on America if this were to occur.
Jeffrey Sachs Warns Against Enacting Secondary Trade Sanctions Against China
Trade dynamics between world powers and economic sanctions are again in the spotlight due to the geopolitical situation that the world is facing. Jeffrey Sachs, Director of the Center for Sustainable Development at Columbia University, has warned about the possible repercussions of enacting secondary sanctions against China for its trade relations with Russia.
Sachs declared that if these sanctions are somehow applied, the retaliation of Chinese authorities would be strong. In an interview with the Russian official news agency TASS, he stated:
I think that if the United States were to try to apply such so-called secondary sanctions, China would respond in a way that would basically stop the U.S. economy.
Furthermore, he believes that the U.S. lacks the means to enact these secondary sanctions effectively as the Chinese government managed to counter the previous tariffs enacted by threatening to cut rare earth supplies.
Sachs explained that this would hurt American influence over other countries, causing some to turn their backs on the U.S., creating trade circuits that exclude the North American power to avoid being affected by similar sanctions.
He assessed:
The US cannot impose such penalties. The rest of the world will just say ‘You’re on your own. We don’t need to trade with you. We’ll trade with each other.’ … So, I don’t believe that this is going to happen.
Sachs’ statements come after President Donald Trump threatened to enact secondary tariffs of 100% on Russia’s trade partners if President Putin fails to capitulate and reach an agreement with Washington regarding its participation in the conflict against Ukraine in the next six weeks.
India, another of Russia’s largest trade partners, would also be potentially affected by these measures, an element that adds to the skepticism that analysts have over the effective fulfillment of these threats.
