The goals stated by U.S. President Donald Trump when he announced the so-called "reciprocal tariffs" on trading partners are largely unattainable, as they are conflicting, said a Swiss economist.
GENEVA, June 6 (Xinhua) -- Swiss economist Stefan Legge has called the tariff policy of the U.S. administration "conflicting," warning against its ripple effects on global markets.
The goals stated by U.S. President Donald Trump when he announced the so-called "reciprocal tariffs" on trading partners are largely unattainable, as they are conflicting, said Legge, lecturer in economics and head of the Department of Tax and Trade Policy at the University of St. Gallen in Switzerland, in a recent interview with Xinhua.
Legge said that on the one hand, Trump wants to use tariffs as leverage to compel policy changes abroad and make deals that he considers beneficial to the United States. On the other hand, he also seeks to achieve economic goals such as generating revenue and strengthening U.S. businesses through the actual imposition of tariffs.
That means the tariffs aren't merely a threat -- they must actually be in place, which undermines their effectiveness as leverage, said Legge, pointing to a fundamental contradiction in the policy logic.
The U.S. tariffs have exerted ripple effects on global markets, he noted.
Companies rushed shipments to the United States in anticipation of new tariffs earlier this year, causing short-term export spikes followed by declines.
"So we see a lot of instability and turbulence, but the biggest thing is the uncertainty," he said.
According to Legge, such uncertainty not only deters business exports and investment but also extends well beyond tariffs to undermine U.S.-Europe relations.
"It's hard to deal with nations or companies that are unreliable," Legge said. "I think for Europe, we have to ask ourselves to what extent the United States is a reliable player."
The unpredictability of the United States in its trade policies and negotiations has prompted Europe to strengthen ties with other partners, he said.
Legge commended China's economic transformation over the past few decades and highlighted the importance and potential of Europe-China cooperation.
He said that many people in Switzerland are eager to switch to electric vehicles but face challenges related to batteries and charging. Chinese companies, he added, have made significant progress in this area. "We want to benefit from it," said Legge.
In his opinion, Swiss policymakers have become increasingly practical about trade and collaboration with China in recent years, which he regarded as a positive development.
The Swiss expert believes countries should prioritize practical collaboration to address common issues such as climate change, biodiversity and economic progress.
"So I think we should continue the dialogue, strengthen the collaboration and make sure we benefit from the mutual exchange of goods, services, ideas and people," said Legge.■
