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A significant coalition of economists, including two distinguished Nobel laureates, has publicly denounced President Donald Trump's tariff policies, labeling them as "misguided" and expressing concern that these measures could potentially lead to a "self-inflicted recession." This critical stance is outlined in an "anti-tariff declaration" that has garnered nearly 900 signatures from various economic experts as of Saturday afternoon.

The letter presents a stark warning about the urgency of reversing what the signatories call the Trump administration's "incoherent and damaging policies" regarding trade. "The proponents of tariffs portray these measures as acts of 'economic liberation,'" the declaration states. "Instead, tariffs invert the principles of liberty that ushered in an American-led age of human freedom and prosperity." This sentiment underscores the belief that protective tariffs, rather than liberating the economy as suggested, may in fact restrict it.

Continuing their critique, the authors argue, "The current administration's tariffs are motivated by a mistaken understanding of the economic conditions faced by ordinary Americans." They foresee that the American workforce will bear the brunt of these misguided policies, likely facing increased prices and the looming risk of an economic downturn.

President Trump has consistently defended his tariff policies, asserting that they are necessary to address a longstanding trade deficit that has burdened the United States. He has also maintained that these tariffs are instrumental in revitalizing the domestic manufacturing sector, which has seen many jobs relocate overseas over the years. Earlier this month, Trump acknowledged there might be some "transition problems" as a result of these policies but urged Americans to persevere and support his approach.

Among the notable signatories of the anti-tariff declaration are Nobel laureates James Heckman and Vernon Smith, former Republican Senator Phil Gramm from Texas, and N. Gregory Mankiw, who chaired the Council of Economic Advisors under President George W. Bush. Their involvement adds significant weight to the argument against the current tariff strategy.

The declaration specifically criticizes Trump's approach to "reciprocal" tariffs, labeling the rates imposed on other countries as calculated through an "erroneous and improvised formula with no basis in economic reality." This assertion indicates a growing concern among economists regarding the validity and effectiveness of the methods used to determine these tariffs.

Despite their criticisms, the signatories express a degree of optimism that sound economic principles, supported by empirical evidence and historical context, will ultimately prevail over what they refer to as the "protectionist mythologies of the moment." This optimistic outlook highlights a belief in the resilience of economic rationality in the face of contemporary challenges.

Traditionally, conservatives have been strong supporters of Trump's economic initiatives. However, the tariff policy has recently encountered increasing resistance, even from within the Republican Party. In a notable development earlier this month, seven GOP lawmakers signed a bill proposing the removal of tariffs after 60 days if they are imposed by a president without congressional approval.

Since the inception of Trump's second term, the administration has oscillated between imposing and retracting tariffs on various goods and services. On April 2, the president famously declared "Liberation Day," during which he introduced extensive tariffs on multiple countries. Yet, just one week later, he opted for a 90-day pause on the highest tariffs, maintaining a baseline rate of 10% for most nations.

Trump's tariff policies have significantly disrupted long-standing economic and political relationships with key allies, such as Canada and Mexico, while igniting a protracted trade war with China. Recently, the administration exempted several tech products from tariffs imposed on Chinese imports; however, Commerce Secretary Howard Lutnick later indicated that these exemptions would be temporary, adding to the uncertainty surrounding these trade policies.

The president's recent maneuvers in the trade arena have contributed to volatility in both the stock and bond markets, and many economists have criticized the administration's inconsistent trade strategy. The White House has not yet responded to inquiries from Business Insider regarding the letter and its implications.