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American economist and Columbia University professor Jeffrey Sachs has issued a stark warning about the United States’ recent turn towards trade protectionism. He asserts that the U.S. government’s decision to impose unilateral tariffs is not only detrimental to the global economy but also undermines the nation’s own economic vitality.
“This protectionist approach is misguided and harmful,” Sachs stated. “Protectionist economies do not thrive; they lose their competitive edge.” He cautioned that history has shown the perils of such strategies, referencing the Smoot-Hawley Tariff Act of the 1930s. “When the U.S. imposed high tariffs then, it led to a global cascade of protectionism that was catastrophic, resulting in a collapse of global trade and heightened international tensions,” he explained.
Sachs emphasized that the United States has been a significant beneficiary of the Chinese mainland’s economic rise. “China’s rapid development has fueled growth in American industries and the digital revolution,” he noted. “It’s made many industries and individuals in the U.S. prosperous.”
Addressing the political motivations behind the protectionist sentiment, Sachs acknowledged the role of electoral politics. “The pursuit of votes in key states has contributed to anti-trade rhetoric,” he observed. However, he expressed hope that policymakers would recognize the economic realities beneath the political surface.
Sachs urged other nations, especially those in Europe, to maintain open trade relationships with the Chinese mainland. “There’s a big world beyond the U.S.,” he said. “If the U.S. retreats from open trade, China will become the low-cost provider of key technologies to the rest of the world.” He advised countries not to “blindly follow the U.S.” down a path that could hinder global economic progress.
Concluding his remarks, Sachs highlighted the critical importance of fostering mutually beneficial economic partnerships. “Protectionism poses significant risks,” he warned. “Championing free and fair trade is essential for global prosperity and peaceful international relations.”
