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Global trade wars and tariffs cause a recession and harm the global economy, an unprecedented 1,000 economists from 60 countries said in a joint statement on Friday.
“These tit-for-tat trade conflicts threaten to create a self-reinforcing economic crisis characterized by a crisis of confidence, wages plummeting and collapsing trade and productivity,” the statement said.
The influential economists called on leaders to refrain from actions that could harm the global economy, including tariffs, threats to withdraw security support for allies, and “posturing on trade protectionist measures” in an effort to “bolster their own domestic political fortunes” amid populist movements.
“Instead of the circular firing squads of trade wars, it is time to cooperate,” the economists said.
The statement by the economists comes as the U.S. and China remain locked in negotiations, with the trade war between the world’s two largest economies worsening.
The U.S. has imposed tariffs on $250 billion worth of Chinese imports, while China has retaliated with tariffs on $110 billion worth of U.S. imports.
President Donald Trump has threatened further tariffs that could hike the price of goods Americans consume. He wants China to buy more American goods and has accused China of attempting to steal U.S. intellectual property.
On Thursday, Beijing said the U.S. “must face the consequences” of further tariffs.
“We are the victims of large-scale trade protectionism and are ready to fulfill our responsibility,” the Chinese commerce ministry said in a statement on its website.
The economists who signed the statement in support of free trade include Oliver Hart, an economist at the London School of Economics and former member of the European Union’s Monetary Policy Committee.
It was co-sponsored by the New York-based Economic Policy Institute and the Bipartisan Policy Center in Washington.
https://www.thestreet.com/content/amp/2019/06/01/DHGDdggFhczFg/
“These tit-for-tat trade conflicts threaten to create a self-reinforcing economic crisis characterized by a crisis of confidence, wages plummeting and collapsing trade and productivity,” the statement said.
The influential economists called on leaders to refrain from actions that could harm the global economy, including tariffs, threats to withdraw security support for allies, and “posturing on trade protectionist measures” in an effort to “bolster their own domestic political fortunes” amid populist movements.
“Instead of the circular firing squads of trade wars, it is time to cooperate,” the economists said.
The statement by the economists comes as the U.S. and China remain locked in negotiations, with the trade war between the world’s two largest economies worsening.
The U.S. has imposed tariffs on $250 billion worth of Chinese imports, while China has retaliated with tariffs on $110 billion worth of U.S. imports.
President Donald Trump has threatened further tariffs that could hike the price of goods Americans consume. He wants China to buy more American goods and has accused China of attempting to steal U.S. intellectual property.
On Thursday, Beijing said the U.S. “must face the consequences” of further tariffs.
“We are the victims of large-scale trade protectionism and are ready to fulfill our responsibility,” the Chinese commerce ministry said in a statement on its website.
The economists who signed the statement in support of free trade include Oliver Hart, an economist at the London School of Economics and former member of the European Union’s Monetary Policy Committee.
It was co-sponsored by the New York-based Economic Policy Institute and the Bipartisan Policy Center in Washington.
https://www.thestreet.com/content/amp/2019/06/01/DHGDdggFhczFg/
