Xinhua
26 Apr 2025, 18:15 GMT+10
American companies have been urged to relocate their factories domestically, which may initially spur a temporary economic boom. However, in the long run, this will likely undermine American consumers' purchasing power and lead to a deep economic slowdown, said a Jordanian expert.
AMMAN, April 26 (Xinhua) -- The United States' sweeping tariff hikes will have counterproductive consequences for the country itself in the long term, a Jordanian expert told Xinhua in a recent interview.
The tariff policy marks a fundamental shift away from the liberal economic approach the United States had adhered to for decades, and an economic recession will become inevitable if it persists, said Hassan Al-Dajeh, a professor of strategic studies at Al-Hussein Bin Talal University in Jordan.
He warned that the negative effects of the increasing tariffs extend beyond declining growth to include rising inflation, as the new tariffs impose an additional burden on prices in the U.S. market.
Ultimately, it is American consumers who bear the cost of higher-priced goods, he added.
American companies have been urged to relocate their factories domestically, which may initially spur a temporary economic boom. However, in the long run, this will likely undermine American consumers' purchasing power and lead to a deep economic slowdown, said Al-Dajeh.
He offered 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 explained.
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