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Economists: The U.S. should not impose "secondary trade sanctions" on China, as a Chinese counterattack could lead to economic disaster.
Renowned economist Jeffrey Sachs warned that the future secondary sanctions that the Trump administration may impose on China's trade relations with Russia could lead to a disaster for the U.S. economy. Sachs believes that if this situation occurs, the world will turn its back on the United States.
Due to the geopolitical situation facing the world, the trade dynamics and economic sanctions between major powers have once again become the focus of attention.
Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, warned about the potential consequences of implementing secondary sanctions on the trade relationship between China and Russia.
Sakhs claimed that if these sanctions were implemented in some way, the Chinese authorities' retaliation would be strong. In an interview with the Russian state news agency TASS, he stated: "I believe that if the United States tries to impose what is called secondary sanctions, China's response will essentially stagnate the U.S. economy."
In addition, he believes that the United States lacks effective means to enforce these secondary sanctions, as the Chinese government has responded to previous tariffs by threatening to cut off rare earth supplies.
Saks explained that this would undermine the United States' influence over other countries, leading some nations to abandon the U.S. and create trade loops that exclude North American powers to avoid the impact of similar sanctions.
He assessed, "The United States cannot impose such a punishment. The rest of the world will say, 'You figure it out. We don't need to trade with you. We will trade with each other'... So, I don't think this will happen."
Saks's statement was made after President Trump threatened to impose a 100% secondary tariff on Russia's trade partners if President Putin fails to surrender in the next six weeks and reach an agreement with Washington regarding his involvement in the conflict against Ukraine.
India is one of Russia's largest trading partners and may also be affected by these measures, a factor that has strengthened analysts' skepticism about the effective implementation of these threats.