President Donald Trump announced last week he would raise tariffs on steel and aluminum exports, which Nobel Prize winning economist Robert Shiller, PhD, said could be a dangerous move for the U.S., according to CNBC.
Dr. Shiller, who won the Nobel Prize for economics in 2013, said the increased tariffs could force other nations to retaliate against the U.S. in other aspects of global trade, potentially setting off an international trade war.
"I'd wonder if this isn't just a first step, that Trump has in mind raising other tariffs. Even if he doesn't there will be other countries who will retaliate and they'll get bigger. This is really like a first shot in a war and that's what is worrisome," said Dr. Shiller, according to CNBC.
President Trump's proposal would raise steel tariffs to 25 percent and aluminum tariffs to 10 percent.