Xinhua
04 Apr 2025

"Ultimately, these policies harm the very economy they aim to protect."

BARCELONA, Spain, April 3 (Xinhua) - U.S. President Donald Trump's newly announced tariffs on imported goods are "not the best way to make economic policy," said Sergi Basco, an associate professor of economics at the University of Barcelona, in an interview with Xinhua on Thursday.

Basco criticized the move, stating that apart from "extraordinary circumstances" -- such as in Japan during the 1970s -- tariffs are widely regarded by economists as a poor economic tool. "If a country's economy is still developing and not yet ready to compete globally, protection might make sense initially. But once matured, it should be opened up," he explained. "This is not the case with the American economy."

Trump's plan includes a 10 percent baseline tariff on goods from all countries, along with "reciprocal" tariffs targeting economies with allegedly "high trade barriers" to U.S. exports. European Union members, including Spain, are facing a 20 percent reciprocal tariff, prompting European Commission President Ursula von der Leyen to warn of countermeasures.

Basco argued that tariff wars risk fueling inflation and hurting productivity. "Tariffs lead to higher production costs and inefficiency. They make goods more expensive and reduce competitiveness," he said. "Protectionism makes companies less efficient."

He emphasized that the negative consequences will likely fall hardest on the U.S. itself. "American consumers and manufacturers will face higher prices -- especially for goods like aluminum and steel, which are essential inputs in U.S. production," Basco noted, referring to previous tariffs imposed by the Trump administration. "Ultimately, these policies harm the very economy they aim to protect."