Nobel Prize-Winning Economist Warns of Trump Recession
A Nobel Prize-winning economist has told
Newsweek that President Trump's trade policies and the ambiguity surrounding their implementation are pushing America toward an economic downturn.
The warning came from James Heckman, a professor of economics at the University of
Chicago, who said: "The fear of tariffs and the uncertainty about their magnitude and duration is causing the recession."
Trade economists were scratching their heads on Thursday at the formula used by the White House to measure trade imbalances and inflict punishment on all its global trading partners.
Handed a chart in the White House Rose Garden, US President Donald Trump presented the rationale for how his administration would impose reciprocal tariffs on partners ranging from major powers like China and Europe to the smallest nations.
The figures presented bear little resemblance to actual tariff levels, however. "This is to economics what creationism is to biology, astrology is to astronomy," former Treasury Secretary Larry Summers posted on X.
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