A prominent U.S. scholar has issued a stark warning about the Trump administration's new tariffs, calling them "one of modern history's greatest economic blunders." David Firestein, CEO of the George H. W. Bush Foundation for U.S.-China Relations, detailed how the policy caused an unprecedented $6 trillion stock market collapse within 48 hours of its announcement – a loss comparable only to market crashes during the Great Depression era.
In an exclusive interview with China Media Group, Firestein explained how the tariffs create a "triple threat" to America: rising consumer prices, worsening inflation, and potential mass layoffs. "U.S. manufacturers will face higher production costs," he noted, "leading to reduced competitiveness and eventual workforce reductions."
The analysis extends beyond U.S. borders, with Firestein highlighting global ramifications. The tariffs reportedly violate key terms of the United States-Mexico-Canada Agreement – ironically negotiated by the same administration – while undermining the principle of comparative advantage that has governed international trade for decades.
"This isn't just about trade balances," Firestein warned. "We're watching the intentional dismantling of globalization's foundation – with the U.S. dollar's stability and recession risks hanging in the balance." His comments come as markets worldwide prepare for potential ripple effects from the policy shift.
