Trump’s Tariffs may hurt U.S. economy

Donald Trump’s campaign vow to levy tariffs on non-U.S. goods could notably affect Chinese imports with a 60% tariff and impose a minimum of 10% on other foreign goods. His aim is funding tax cuts and promoting local products to boost growth and jobs. However, Professor Philipp Schröder from Aarhus University contends this defies the longstanding economic principle of comparative advantages that underpin global trade’s win-win nature. While targeted tariffs can protect industries, like the EU’s duties on Chinese electric cars to shield its auto industry, Trump’s broad tariffs lack economic theory support. Schröder predicts negative repercussions for Americans, potentially reversing the 5-10% real income gains realized from China’s WTO entry, which enabled access to cheaper goods and specialization-driven competitiveness for U.S. companies.