NYT: US tariff experiment raises economic questions

Over the past six months, the United States has abandoned the longstanding global trade framework in favour of a radically different and largely untested approach, marking a significant departure from decades of policy.

While the Trump administration has presented its new trade strategy as a political triumph, economists remain divided over whether it will deliver economic success. The current US tariff levels are among the highest seen since the early 20th century—rates typically associated with developing nations protecting emerging industries rather than established industrial powers, according to The New York Times report.

Supporters of the policy, including President Trump, argue that imposing higher tariffs will incentivise companies to bring manufacturing back to the US, boosting domestic factory jobs with limited downside for consumers and businesses. The administration also maintains that the burden of tariffs will fall on foreign governments, not on American consumers—despite a body of research suggesting otherwise.

“It worked for England, the U.S., France, Benelux, Germany, Japan, Korea and all others who became rich,” said Clyde Prestowitz, a former US government official and founder of the Economic Strategy Institute, drawing comparisons between the current approach and pre-World War II America.

Prestowitz described the US shift as bearing “a lot of similarities” with countries that used mercantilist, protectionist policies to build wealth through trade surpluses.

Still, many economists warn that the tariffs could lead to higher prices on imported goods, which would affect both businesses and consumers.

They caution that this could slow economic growth and potentially undermine the administration’s efforts to revitalise American manufacturing.

By Sabina Mammadli