American economist Jeffrey Sachs has voiced strong concerns over the U.S. government's recent implementation of a 10 percent tariff on Chinese goods. Sachs described the unilateral tariffs as \"a misguided, detrimental aspect of U.S. statecraft,\" warning that such protectionist measures are harmful not only to the United States but also to the global economy.
Drawing parallels to the Smoot-Hawley Tariff Act of the 1930s, Sachs highlighted the catastrophic consequences of protectionism, including \"a collapse of global trade, a collapse of peaceful relations among countries and eventually the return to world war.\" He emphasized that protectionist economies tend to lose their competitive edge and struggle to thrive.
Sachs acknowledged that China's rapid economic development has been beneficial for the U.S., fueling the growth of various industries and the digital revolution. He noted that this growth has made many Americans and industries prosperous. However, he expressed concern over the political dynamics in the U.S., where the pursuit of votes in swing states has fueled anti-trade rhetoric.
Looking beyond the United States, Sachs urged other countries, particularly in Europe, to maintain open trade relationships with China rather than succumbing to the rising tide of protectionism. He cautioned that if the U.S. continues on its protectionist path, China could become the low-cost provider of many key technologies globally, potentially reshaping international trade dynamics.
Sachs' insights serve as a reminder of the risks associated with protectionist policies and underscore the importance of fostering mutually beneficial economic partnerships on the global stage. His call for free and fair trade highlights the need for collaborative efforts to ensure sustainable global prosperity amidst growing geopolitical tensions.
Reference(s):
cgtn.com
