 "Prominent economists including 2 Nobel laureates sign letter condemning Trump tariffs")
Dozens of economists, including two Nobel laureates, have signed a letter criticising US President Donald Trump’s tariff policy, calling it “misguided” and insisting that it has “no basis in economic reality”. In the letter, titled “ Anti-tariff declaration,” the economists raised several concerns, including how the tariffs could cause “ self-inflicted recession .”
As of Sunday afternoon, over 1,000 people have signed the letter. The writers warned that the timeline to undo the Trump administration’s “incoherent and damaging policies” on trade is narrowing. “The proponents of tariffs portray these measures as acts of ’economic liberation.’ Instead, tariffs invert the principles of liberty that ushered in an American-led age of human freedom and prosperity,” the letter reads.
“The current administration’s tariffs are motivated by a mistaken understanding of the economic conditions faced by ordinary Americans,” it continues. “We anticipate that American workers will incur the brunt of these misguided policies in the form of increased prices and the risk of a self-inflicted recession.”
The signatories include high-profile economists
While announcing the reciprocal tariffs , Trump said that they are meant to reverse America’s persistent overall trade deficit. He has also argued that the tariffs will boost the country’s manufacturing industry, which has seen many jobs shift overseas. Earlier this month, Trump warned that there might be some ’transitional problem’ but emphasised that the measure is good for the country.
Some of the high-profile signatories of the anti-tariff declaration include Nobel laureates James Heckman and Vernon Smith, the economist and former Republican Sen. Phil Gramm of Texas, and N. Gregory Mankiw, the chair of the Council of Economic Advisors under President George W. Bush.
The signatories specifically called out Trump’s ‘reciprocal tariff’ policy. “The ‘reciprocal’ tariff rates being threatened and imposed by the United States upon other countries are calculated using an erroneous and improvised formula with no basis in economic reality,” the letter reads.
“We remain hopeful, however, that sound economic principles, empirical evidence, and the warnings of history will prevail over the protectionist mythologies of the moment,” the letter furthered. It is pertinent to note that the Trump tariffs have also met with increased resistance from within, including seven GOP lawmakers who signed on to support a bill that would remove tariffs after 60 days if a president imposes them without approval from the US Congress.
Impact Shorts
More ShortsThe policy has also caused volatility in the stock markets , with stocks crashing to new lows. The White House is yet to respond to the letter and it is unclear what will happen after 90-day pause on tariffs come to an end.
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