How Do Tariffs Affect the U.S. and Global Economy?

TRANSCRIPT

Most economists do not have a positive view of the tariffs because it’s a situation where we have no winners; everyone loses. From an economic viewpoint, the tariffs are harmful because they raise the prices and they hurt the middle class and create tension with other nations, not only China but Mexico, Canada, Japan, and South Korea. 

Another thing that’s negative about the tariffs is that when we do that, we are not on the right side of history. Because we all remember that the U.S. occupied the high-water ground after 1945, when it supported free trade and later on became a champion of globalization.

If we’re going to retreat, then this is a sign that our industries will be artificially protected. And in that sense we will not able to compete in the global market. So this is a sign of weakness, not a sign of strength.