U.S. President Donald Trump’s latest push for reciprocal tariffs, framed as a bid for “fair trade,” is sparking fierce debate among economists and policymakers. The move, announced via a White House memo, proposes new levies on imports from countries that tax American goods – a strategy Trump claims will “flood” the U.S. with jobs. But experts warn the plan risks backfiring on workers and consumers alike.
The Job Creation Myth
While Trump touted tariffs as a jobs catalyst, economists cite a looming threat of layoffs. Complex global supply chains mean parts often cross borders multiple times during production. Tariffs on these components could “add up really quickly,” says NYU professor Christopher Conlon, eroding profit margins and forcing manufacturers to cut shifts or streamline operations.
Supply Chain Upheaval
Retaliatory measures could disrupt intricate trade networks. For example, U.S. tariffs on Canadian goods in 2018 led to costly workarounds, and analysts fear similar ripple effects globally. Higher production costs may also trickle down to retailers, with U.S. consumers already grappling with 40-year inflation highs footing the bill.
Global Economic Uncertainty
The proposal arrives amid fragile post-pandemic recovery efforts. Critics argue that escalating trade barriers could strain international relations and destabilize markets, particularly in G20 nations. As inflation persists, the move raises questions about its timing and long-term impact on U.S. economic resilience.
Reference(s):
cgtn.com
