Expert Says U.S. Tariffs Could Backfire, Leading to Economic Recession
(MENAFN) The United States' recent decision to raise tariffs will likely have negative long-term effects on its economy, according to a Jordanian expert. In a recent interview, Hassan Al-Dajeh, a professor of strategic studies at Al-Hussein Bin Talal University, stated that these tariff hikes signal a major departure from the U.S.'s traditionally liberal economic stance. He warned that if the policy continues, an economic recession is inevitable.
Al-Dajeh pointed out that the impact of higher tariffs extends beyond just slower economic growth; they could also trigger inflation, with the added costs being passed onto consumers through increased prices. He emphasized that American consumers would ultimately shoulder the burden of these price hikes.
The push for U.S. companies to move manufacturing back home could give a short-term boost to the economy, but this will likely have detrimental effects over time. Al-Dajeh suggested that this shift could lower consumer purchasing power, pushing the economy toward a slowdown. He provided an example: "A Hyundai car manufactured in South Korea costs 24,000 U.S. dollars in the United States, but if it's manufactured domestically, considering the higher wages and supply chain differences, the cost rises to 40,000 dollars."
"This almost doubled price is beyond what the average American can afford and will place significant financial pressure on consumers, ultimately forcing a reduction in their standard of living," he concluded.
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