That’s because they are “too crazy,” said Shiller, a professor of economics at Yale University.
“They are generating so much anger around the world. It’s not a sustainable policy,” he said on “Power Lunch"
Trade tensions have been escalating between the U.S. and the rest of the world. On Sunday, The Wall Street Journal reported that Trump plans to bar several Chinese companies from making investments in American technology.
Meanwhile, last week, a flurry of back-and-forth tariff threats continued between the U.S. and China, as well as between the U.S. and the European Union.
His latest tariff announcement against China came earlier in the week when he asked the U.S. trade representative to identify $200 billion worth of Chinese imports for tariffs. His most recent target for the EU is autos, announcing the U.S. would impose tariffs on car imports if the EU didn’t remove duties on American cars.
Todd Buchholz, former White House economic advisor under President George H.W. Bush, believes timing is key for the Trump administration.
He told “Closing Bell” on Monday that the White House is probably thinking “if you can’t take on China now — when the economy is growing at 4 percent, when unemployment is nearly at record lows — when will you have the wherewithal to do that?”
“Does it take a toll on the economy? Yes. Does it take a toll on the market? Yes,” he added.
However, Trump is someone who made his name in real estate and reality TV programming, said Buchholz, now CEO of educational start-up Sproglit.
“He knows a lot about game theory and this is a game he’s playing. We’re all participants in it, whether we want to or not,” he noted.