Renowned Harvard economist Gregory Mankiw has criticized recent US tariff policies as "large-scale economic malpractice," shedding light on their disruptive impact on global trade dynamics. Speaking to CNN, Mankiw, author of widely used economics textbooks and former White House advisor, emphasized how tariffs exacerbate market uncertainty, discouraging businesses from making long-term investments.
"When businesses confront unpredictable trade policies, investment decisions grind to a halt," Mankiw explained. His remarks come amid heightened trade tensions between the US and key Asian economies, with many multinational firms reassessing supply chain strategies across the region.
Analysts suggest such policies could particularly affect technology and manufacturing sectors in East Asia, where cross-border production networks remain deeply integrated. The critique aligns with concerns from APEC members about protectionism's effects on post-pandemic recovery efforts.
For investors monitoring Asian markets, Mankiw's warnings highlight the critical need for stable trade frameworks. Meanwhile, policymakers across the region continue advocating for multilateral solutions through organizations like the WTO to maintain open economic cooperation.
