In a bold challenge to current trade policy, 976 economists including Nobel laureates James Heckman and Vernon Smith have signed the “Trade and Tariffs Declaration,” warning that U.S. tariff measures risk a self-inflicted recession.
The letter, circulated over a single weekend, criticizes the administration’s “reciprocal” tariffs on more than 180 countries and regions as based on an improvised formula “with no basis in economic reality.” The signatories argue that these rates inflate costs for businesses and consumers alike.
On April 2, sweeping tariffs were introduced, only for the highest rates to be paused 90 days later, while a 10-percent baseline rate remains in place for most partners. According to the declaration, this policy flip‑flop has sparked massive sell‑offs on stock markets and prompted retaliatory measures worldwide.
“American workers will bear the brunt of these misguided policies,” the letter states, pointing to rising prices and the looming threat of a downturn. The authors say the tariffs stem from a flawed view of ordinary Americans’ economic realities and a misunderstanding of trade deficits.
Beyond immediate market reactions, the declaration underscores risks to global supply chains, startups, and emerging-market growth. Business and tech communities are watching closely as the policy’s ripple effects reach from manufacturing hubs to digital platforms.
Despite the grim outlook, the economists express hope that “sound economic principles, empirical evidence, and the warnings of history will prevail over the protectionist mythologies of the moment.” For a connected audience eager for real-world impact, the message is clear: informed, data-driven dialogue remains vital.
Reference(s):
cgtn.com
