While tariffs can serve as important tools in addressing unfair global trade practices and protecting national interests, experts caution against sweeping measures that may trigger economic instability or political fallout.
A leading US academic has warned that President Donald Trump’s latest tariff proposals could do more harm than good — not only to the American economy, but also to the broader credibility of US trade policy.
Writing in RealClearMarkets, emeritus professor of finance at Columbia University, Charles Calomiris argues that the proposed tariffs, if implemented without refinement, risk undermining the economic progress achieved in recent years. He points to the likelihood of higher inflation, slower growth, and a potential downturn in exports — all of which would hurt US consumers and producers alike.
Far from strengthening the United States, Calomiris suggests that a blunt approach to tariffs could embolden competitors and strain diplomatic ties.
Rather than rejecting tariffs outright, he calls for more strategic thinking: targeted measures that respond to specific unfair practices, particularly in key sectors where national security or long-term competitiveness is at stake.
The broader message is that tariffs, like any policy instrument, must be used judiciously. Applied too broadly or hastily, they risk unintended consequences.
As the world watches how the United States approaches trade under a new administration, policymakers face a clear challenge: to defend fair trade, without destabilising the very markets they seek to improve.
