“US tariffs are large-scale economic malpractice,” declared Gregory Mankiw, a renowned professor of economics at Harvard University, in a recent interview. He emphasized that when businesses face uncertainty, investment decisions often come to a standstill.
Mankiw’s critique highlights the profound impact of trade policies on global economic stability. He pointed out that tariffs can disrupt international supply chains and hinder economic growth not just in the United States, but around the world.
“Uncertainty is the enemy of investment,” Mankiw noted. “When companies are unsure about the future of trade agreements and tariffs, they hesitate to invest in new projects, hire more workers, or expand operations.”
For many countries in the Global South, the ripple effects of US tariffs are deeply felt. As major economies engage in trade disputes, developing nations often bear the brunt through slowed growth and reduced investment.
Mankiw’s comments serve as a warning about the far-reaching consequences of protectionist policies. He urged policymakers to consider the global implications of economic decisions and to promote stability to foster investment and growth.
