Jeffrey Sachs Warns U.S. Tariffs on China Harmful to Global Economy
In a recent interview, renowned American economist and Columbia University professor Jeffrey Sachs expressed deep concerns over the United States government's decision to impose unilateral tariffs on the Chinese mainland. Sachs described the move as \"a misguided, detrimental aspect of U.S. statecraft,\" cautioning that protectionist policies are harmful not only to the U.S. but also to the global economy.
\"Protectionist economies do not thrive,\" Sachs stated, emphasizing that such approaches lead countries to \"lose their competitive edge.\" Drawing parallels to historical events, he referenced the Smoot-Hawley Tariff Act of the 1930s. \"When the U.S. imposed high tariffs, it led to a cascade of protectionism all over the world that was catastrophic,\" he explained. \"The consequences included a collapse of global trade, a breakdown in peaceful relations among countries, and eventually the return to world war.\"
Sachs highlighted that the United States has been a major beneficiary of the Chinese mainland's economic rise. \"China's rapid development has been a boon for the U.S., fueling the growth of industries and the digital revolution,\" he noted. \"It's made a lot of people rich and a lot of industries rich in the U.S.\"
Addressing the political motivations behind the protectionist sentiment, Sachs observed that the pursuit of votes in swing states has contributed to the rise of anti-trade rhetoric. Despite this, he expressed hope that policymakers would recognize the economic realities. \"Insiders in what is otherwise politically motivated as a protectionist administration will understand the underlying economic realities a bit better than what is apparent on the surface,\" he said.
Sachs urged other countries, particularly in Europe, to maintain open trade with the Chinese mainland rather than \"blindly following the U.S.\" into protectionism. He argued that if the U.S. \"abandons itself from the open trade system, there's a big world beyond the U.S., and China will become the low-cost provider of many key technologies in the rest of the world.\"
His insights serve as a sobering reminder of the risks posed by protectionism and underscore the importance of fostering mutually beneficial economic partnerships. As the world navigates the challenges arising from U.S.-China tensions, Sachs’ call to champion free and fair trade carries profound significance for the future of international relations and global prosperity.
