The world’s leading economists have called on the US to pull back from a full-blown trade war, warning it could have ruinous consequences for the country and wider global economy.
Every one of the 43 economists polls in Chicago Booth University’s IGM Forum disagreed with the statement that increased tariffs on imports would “improve Americans’ welfare”.
They also agreed that proposed aluminium and steel tariffs of up to 25% would hurt far more Americans than they would help.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The measures have drawn a stinging response from the US’s major trading partners, namely China and the EU, which have threatened a series of tit-for-tat tariffs on iconic US brands such as Levi’s, bourbon whisky and Harley-Davidson motorcycles.
The Daily Telegraph says the decisive survey is “a sharp rebuke” to US President Donald Trump’s claim that “trade wars are good, and easy to win”.
Economists at ING have calculated that a 1% rise in the price of all imports into the US and into the EU would boost domestic production in the US by 0.07% and the EU by 0.1%, but hit the wider economy to the tune of 0.36% and 0.28% of GDP respectively. “As a result,” the Telegraph argues, “any benefit of the tax is more than outweighed by the damage inflicted.”
A separate survey of economists conducted by the Wall Street Journal last week found Trump’s proposed tariffs would lead to job losses, “as gains in the domestic steel and aluminium industries would be outweighed by losses in sectors that purchase those metals”, amid wider concern foreign-trade disputes could escalate and damage the US economy.
Several key pro-free trade Trump advisors, including his top economic advisor, Gary Cohn, have departed over the past few weeks, raising fears the White House could become even more protectionist.
-
Eel-egal trade: the world’s most lucrative wildlife crime?Under the Radar Trafficking of juvenile ‘glass’ eels from Europe to Asia generates up to €3bn a year but the species is on the brink of extinction
-
Political cartoons for November 2Cartoons Sunday's political cartoons include the 22nd amendment, homeless camps, and more
-
The dazzling coral gardens of Raja AmpatThe Week Recommends Region of Indonesia is home to perhaps the planet’s most photogenic archipelago.
-
Argentinian beef is at the center of American farmers’ woesThe Explainer ‘It feels like a slap in the face to rural America,’ said one farmer
-
Will latest Russian sanctions finally break Putin’s resolve?Today's Big Question New restrictions have been described as a ‘punch to the gut of Moscow’s war economy’
-
China’s rare earth controlsThe Explainer Beijing has shocked Washington with export restrictions on minerals used in most electronics
-
The struggles of Aston Martin: burning cash not rubberIn the Spotlight The car manufacturer, famous for its association with the James Bond franchise, is ‘running out of road’
-
Why are beef prices rising? And how is politics involved?Today's Big Question Drought, tariffs and consumer demand all play a role
-
Labor: Federal unions struggle to survive TrumpFeature Trump moves to strip union rights from federal workers
-
New York court tosses Trump's $500M fraud fineSpeed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in IntelSpeed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
