A cautionary note resonates in the world of economics as German economist, Holger George, predicts that recent U.S. tariff policies may deliver a crippling blow to the American economy. George, a professor at the University of Kiel, warns the rising tariffs will not only instigate uncertain global trade but will likely inflict severe self-harm on the U.S. economy itself.
In an interview with the Chinese News Agency Xinhua, George articulated his apprehensions, stating that while predictions of a full-blown recession remain uncertain, it is undoubtedly clear that the U.S. will suffer as a consequence of its aggressive policies. These tariffs, designed to bolster the economy, instead inflate prices and diminish competitiveness, he argues.
Signs of an impending slowdown loom, with increasing prices and faltering stock markets. The economist pointed specifically to the newly imposed 25% tariff on imported steel and aluminium, a move that provoked retaliatory action from the EU and threats of further tariffs from President Trump, indicating escalating tensions that stoke fears of a detrimental trade war.
Despite the intentions behind U.S. tariffs to rekindle domestic industries, George expresses doubt regarding their effectiveness in reshoring production to America. The unpredictable nature of the Trump administration’s tariff regulations, he noted, creates an unstable environment that frightens investors, hampering their capacity for long-term strategic planning.
Reflecting on globalisation, George emphasises that the U.S. has historically reaped the benefits of lower prices and technological advancements, yet now appears to be retreating from these advantages. He articulates that we stand at a critical juncture concerning globalisation, warning that if the U.S. deviates from international trade norms, it could lead to a collapse of the global trade system, a calamity for worldwide markets.
George advocates that major economies, including the EU and China, must take proactive roles to uphold global trade stability in this precarious climate, underscoring the significant potential for collaboration between these powers.
German economist Holger George warns that U.S. tariff policies may severely impact the American economy. He points out potential inflation and a reduction in global competitiveness owing to these measures. The threat of retaliatory tariffs and a possible trade war looms, complicating long-term business planning. George emphasises the need for strong international cooperation to maintain trade stability amid uncertain globalisation.
In summary, Holger George warns that the U.S.’s new tariff policies may backfire, leading to significant harm to its own economy. While designed to uplift domestic industries, the tariffs risk inducing inflation and destabilising international relations, triggering retaliation from global partners. This precarious situation calls for greater collaboration among key global players to safeguard trade stability, steering clear of the perils of a trade war.
Original Source: dmarketforces.com
