In the wake of the U.S. imposing a 10% tariff on China, prominent economist Jeffrey Sachs from Columbia University has voiced strong concerns about the potential fallout of such protectionist measures. Speaking to CGTN Opinion’s editor Yasir Masood, Sachs described the unilateral tariffs as \"a misguided, detrimental aspect of U.S. statecraft. He cautioned that this approach could be harmful not only to the U.S. but also to the global economy.
Sachs drew parallels to the historical Smoot-Hawley Tariff Act of the 1930s, which led to a cascade of protectionist policies worldwide and contributed to severe economic downturns and strained international relations. \"Protectionist economies do not thrive and lose their competitive edge,\" he noted, emphasizing that such strategies ultimately lead to a collapse of global trade and peaceful relations, potentially paving the way back to global conflicts.
Despite his criticisms, Sachs acknowledged that China's rapid economic development has been beneficial for the U.S., fueling industrial growth and the digital revolution. He highlighted that China's rise has made many Americans and industries prosperous, underscoring the interconnectedness of the two economies.
However, Sachs expressed concern over the political motivations behind the protectionist sentiment in the U.S., particularly the pursuit of votes in swing states. He suggested that while the administration's actions may be politically driven, there is hope that economic insiders will recognize the long-term economic realities that protectionism overlooks.
Looking beyond the U.S., Sachs urged other countries, including those in Europe, to remain committed to open trade with China. He warned that if the U.S. deviates from the open trade system, China could become the primary low-cost provider of essential technologies globally, diminishing the U.S.'s economic influence.
Sachs' insights serve as a critical reminder of the risks associated with protectionism. He advocates for maintaining mutually beneficial economic partnerships to ensure continued global prosperity and stability. As tensions between the U.S. and China persist, his call for free and fair trade highlights the importance of collaboration over isolation in navigating the complexities of international relations.
Reference(s):
cgtn.com
