Economist Thomas Sowell has voiced strong concerns about President Donald Trump’s approach to tariffs and international trade. In an interview on April 1, just before Trump announced significant tariffs affecting multiple countries, Sowell criticized the potential consequences of these policies.
The tariffs, described by the White House as a “Liberation Day” initiative, aimed to create a system of reciprocity in trade. This meant that countries would face tariffs based on the trade barriers they impose on the U.S. However, Sowell warned that this could lead to a damaging trade war, similar to the economic policies of the 1920s that contributed to the Great Depression.
Sowell, who is 94 years old, expressed his disappointment at seeing history repeat itself. He stated, “It’s painful to see what a ruinous decision, from back in the 1920s, being repeated.” He acknowledged that while Trump might be using tariffs to achieve specific goals, the risk of igniting a worldwide trade conflict could result in severe economic consequences for everyone involved.
Drawing a comparison to former President Franklin D. Roosevelt, Sowell noted that Roosevelt’s experimental approach worked within a known set of rules. In contrast, Trump’s unpredictable tariff strategy leaves others uncertain about future actions, which could lead to people holding onto their money instead of investing or spending.
Sowell highlighted that uncertainty can lead to economic stagnation, similar to what was experienced during the Great Depression. He mentioned that recent fluctuations in the stock market followed Trump’s tariff announcements, indicating that investors are hesitant due to the unclear direction of trade policies.
He concluded by saying that if Trump’s tariff strategy is just a short-term tactic, it might be manageable. However, if it becomes a long-term policy, it could cause significant economic hesitation. Sowell’s remarks reflect a broader concern about the potential for trade wars and their impact on the global economy.