U.S. scholar says Trump's tariff policy an enormous economic blunder

A renowned U.S. scholar has described the Trump administration's new tariff policy as one of the most serious economic policy miscalculations in modern American history, warning of far-reaching consequences for both the U.S. and global economies.

David Firestein, CEO of the George H. W. Bush Foundation for U.S.-China Relations, said in a recent interview with China Media Group (CMG) that the new tariffs could severely damage the U.S. economy. 

He pointed to a dramatic $6 trillion drop in U.S. stock market value over just two trading days following the announcement, noting that such a loss is virtually unparalleled outside of historic crises like the Great Depression that began with the 1929 stock market crash.

Firestein views these outcomes as avoidable, describing them as self-inflicted.

He told CMG that the new tariffs will directly raise consumer prices, intensify inflation and eventually lead to job losses. He explained that U.S. producers will likely face higher raw material costs, which could reduce sales and force factory layoffs.

He also warned that the tariffs would contribute to a weakening of the U.S. dollar and heighten the risk of a recession.

Beyond its domestic implications, the policy is also seen as a direct challenge to the global trade order. 

Firestein said that the imposition of new tariffs violates key international trade agreements, including the United States-Mexico-Canada Agreement that was negotiated and endorsed by the Trump administration itself, and that Trump is dismantling the globalized trade framework based on comparative advantage, a principle that underpins modern international commerce.

(Cover: Shipping containers are stacked on ships at PortMiami in Miami, Florida, U.S., April 7, 2025. /VCG)