Christian Dustmann appeared on the TV program Börse am Abend on the German channel WELT to discuss the broader implications of tariff policies introduced by former U.S. President Donald Trump.
In the interview, Professor Dustmann emphasized that these tariff threats against Mexico, Canada, and China are driven more by political objectives than by economic strategy. He pointed out that such measures disrupt global trade dynamics, particularly impacting industries reliant on international supply chains, such as automobile manufacturing. He also highlighted the inflationary risks posed by high tariffs, noting that rising costs for imported goods could prompt the U.S. Federal Reserve to adjust interest rates, further affecting investment and economic stability.
Beyond the immediate economic consequences, Dustmann warned of the long-term geopolitical risks associated with aggressive trade policies. He argued that trade restrictions could push traditional U.S. allies, including European and South American nations, to establish alternative trade alliances, potentially diminishing U.S. influence in global commerce.
The full interview is in German and is available on WELT’s official website:
Watch here.
