Nobel Prize-winning economist: Trump tariffs 'like a first shot in a war'

Nobel Prize-winning economist: Trump tariffs 'like a first shot in a war'

President’s Trump’s proposal for massive tariffs on steel and aluminum imports will launch the U.S. into a global crisis like “a first shot in a war,” a Nobel Prize-winning economist warned on Friday. 

"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," Robert Shiller told CNBC. 

Shiller won a Nobel Prize for economics in 2013. 

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Shiller expects there will be an “immediate disruption effect” which has already begun rippling across the globe. 

Foreign leaders have condemned Trump’s decision to slap 25 percent tariffs on steel and 10 percent tariffs on aluminum imports, including Canada and the United Kingdom. 

“It is entirely inappropriate to view any trade with Canada as a national security threat to the United States," Canadian Foreign Minister Chrystia Freeland said in a statement threatening retaliation. 

The European Union is weighing potential tariffs on U.S. goods like bourbon, blue jeans and Harley-Davidson motorcycles.

The European Steele Association warned Trump on Friday that the stiff tariffs could “blow up” the World Trade Organization. 

Members of Trump's own party, including Speaker Paul RyanPaul Davis RyanHouse Ethics Committee informs Duncan Hunter he can no longer vote after guilty plea Duncan Hunter pleads guilty after changing plea Trump campaign steps up attacks on Biden MORE (R-Wis.), have also fiercely criticized the move for the impact it will have on American workers. 

Sen. Ben Sasse (R-Neb.) said Trump's proposal is like “a massive tax increase on American families” and accused him of betraying GOP principles.

“Protectionism is weak, not strong. You'd expect a policy this bad from a leftist administration, not a supposedly Republican one,” he said.