Trump tariffs not a sustainable policy:  Yale economist Robert Shiller

President Donald Trump’s corporate tax cuts are probably here to stay but it’s likely a different story for his tariffs, Nobel Prize-winning economist Robert Shiller told CNBC on Monday.

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.

Fears of a trade war have been weighing on the stock market. On Monday, the Dow Jones Industrial Average dropped as much as 496 points, while the S&P 500 fell 2 percent before both regained some ground. The Dow ultimately closed more than 300 points lower after Trump trade advisor Peter Navarro told “Closing Bell” there are no plans to restrict foreign investment as part of the administration’s trade actions against China or other countries

Shiller said Trump has been supporting the market with his “capitalist tilt.”

“People believe that he’s good for the market. But not necessarily if we start antagonizing,” he said, noting the recent meeting of G-7 leaders “looked grim.”

“This kind of antagonism with our allies I think will eventually harm confidence.”

The new CNBC All-America Economic Survey shows that for the first time since Trump took office, the majority of Americans approve of his handling of the economy.

The survey, released Monday, shows the president’s economic approval rating surged 6 points to 51 percent from the March survey. Just 36 percent of the public disapproved.