NEW DELHI, April 21: Over 970 individuals, including leading economists and Nobel laureates, have signed a declaration condemning former U.S. President Donald Trump’s tariff policy, labelling it “misguided” and warning of potential economic fallout, including a “self-inflicted recession.”
The declaration, titled “Trade and Tariffs Declaration: A Statement on the Principles of American Prosperity,” criticises the administration’s “reciprocal” tariffs, which impacted over 180 countries and regions.
Signatories, including Nobel Prize winners James Heckman and Vernon Smith, argue the tariffs are based on a flawed formula “with no basis in economic reality.”
The statement emerged as Trump’s tariff measures, initially framed as a strategy to address trade deficits and revitalize U.S. manufacturing, faced growing backlash.
On April 2, Trump declared “liberation day” for American trade, imposing sweeping tariffs on trading partners. However, a week later, he paused the highest tariffs for 90 days, maintaining a 10% baseline rate for most nations.
These policies have prompted sell-offs in global stock markets and retaliatory measures from affected countries.
Economists caution that U.S. workers could bear the brunt of the tariffs through increased consumer prices and heightened recession risks.
“The administration’s approach stems from a fundamental misunderstanding of the economic challenges faced by ordinary Americans,” the declaration asserts.
It criticises the tariffs as “incoherent and damaging,” urging a shift toward evidence-based trade policies.
The economists expressed hope for a return to sound economic principles, stating, “History has shown that protectionist policies often lead to more harm than good. We urge policymakers to reject these myths and focus on strategies that truly benefit American prosperity.”
