Trump’s Tariffs are Rubbish, the Economics is Just All Wrong: American Economist
US President Donald Trump’s decision to impose tariffs on other countries has sparked widespread criticism and debate among economists and international leaders. One of the most vocal critics is American economist and Johns Hopkins University professor Steve Hanke, who has called Trump’s tariffs “absolutely rubbish.” In an interview with NDTV, Hanke explained that the economics behind Trump’s tariffs are fundamentally flawed, and that the consequences of these policies will be severe and far-reaching.
For those who may not be familiar, tariffs are taxes imposed on imported goods. Trump’s administration has imposed tariffs on a number of countries, including a 50% tariff on India, which has been met with strong resistance from the Indian government and business community. The logic behind these tariffs is that they will protect American industries and jobs by making foreign goods more expensive and thereby reducing demand. However, Hanke argues that this logic is fundamentally flawed.
“The economics is just all wrong,” Hanke said. “Tariffs are a tax on consumers, not a tax on imports. They’re a tax on the American people, not on the imports themselves. And they’re a tax that’s imposed by the government, which means that it’s a regressive tax, it’s a tax that falls most heavily on the poor and the middle class.”
Hanke also pointed out that tariffs are a form of protectionism, which is a policy that is widely recognized as being harmful to the economy. “Protectionism is a failed economic policy,” he said. “It’s a policy that has been tried many times in the past, and it’s always failed. It’s a policy that increases costs, reduces competition, and reduces economic growth.”
In addition to the economic arguments against tariffs, Hanke also pointed out that they are a form of economic warfare, which is a dangerous and unpredictable game. “Tariffs are a form of economic warfare,” he said. “They’re a way of trying to impose one’s will on another country, and they’re a way of trying to punish another country for something that one doesn’t like. But economic warfare is a dangerous and unpredictable game, and it’s a game that can have serious and far-reaching consequences.”
The consequences of Trump’s tariffs are already being felt, and they are likely to be severe and far-reaching. Many American companies have already announced that they will be passing the costs of the tariffs on to consumers, which means that prices for imported goods will likely increase. This could have serious consequences for American consumers, especially those who are already struggling to make ends meet.
In addition to the economic consequences, Hanke also pointed out that Trump’s tariffs are likely to have serious political consequences. “The tariffs are a form of economic nationalism,” he said. “They’re a way of trying to appeal to the American people by saying that we’re going to protect American jobs and American industries. But this is a short-sighted and misguided policy, and it’s a policy that is likely to backfire.”
The Indian government has also criticized Trump’s tariffs, and has announced that it will be taking retaliatory measures. “India will not tolerate this kind of aggression,” said Indian Foreign Minister S Jaishankar. “We will take all necessary measures to protect our interests and our economy.”
In conclusion, Trump’s tariffs are a misguided and harmful policy that is likely to have serious consequences for the American economy and for American consumers. They are a form of economic nationalism that is likely to backfire, and they are a form of economic warfare that is dangerous and unpredictable. As Steve Hanke so eloquently put it, “The economics is just all wrong.”
