Leading Economists Criticize Trump Tariffs, Warn of Recession

Dozens of leading economists, including two Nobel laureates, have signed a declaration condemning President Donald Trump's tariff policy, calling it 'misguided' and warning it could trigger a self-inflicted recession. The economists argue that the tariffs are based on an erroneous understanding of economic conditions and that ordinary Americans will bear the brunt through increased prices and economic instability. Critics also highlight that the 'reciprocal' tariffs use a flawed formula with no grounding in economic reality, and warn of repeating past trade policy mistakes such as the Smoot-Hawley Tariff of 1930. Trump, however, claims the tariffs are necessary to address trade deficits and revive domestic manufacturing, acknowledging potential short-term challenges. Meanwhile, the U.S. tourism industry is feeling the impact of the trade war, with a sharp decline in international visitors and concerns over job losses tied to decreased travel. Despite these concerns, the signatories remain hopeful that sound economic principles and historical lessons will ultimately prevail.