Ravi Menon Warns Economic Uncertainty Hinders Climate Action

Recent U.S. tariff policies, particularly those under Donald Trump, have reignited debate over protectionism versus free trade, with Trump arguing that tariffs are necessary to secure fair trade deals and criticizing the consumption of inexpensive imports, such as toys from China, as unnecessary 'junk.' This rhetoric has drawn criticism from both political opponents and some allies, who contend that such measures could harm American consumers and businesses, and may be politically risky. The intellectual roots of these protectionist arguments can be traced back to economists like Dani Rodrik, who warned decades ago that unchecked globalization could lead to social divisions unless governments mitigated its downsides. Historically, mainstream economists and policymakers downplayed the negative effects of globalization, viewing trade liberalization as almost doctrinal, despite evidence of factory closures and job losses. Globally, escalating tariffs and trade tensions—especially between the U.S. and China—are now contributing to economic uncertainty, inflation, and shifting government priorities away from issues like climate action. The long-term impact of these geoeconomic strategies remains contested, with advocates emphasizing national interests and critics warning of broader economic and political fallout.