Donald Trump's economic policy is a risk to the US, warns Harvard Business School dean

Donald Trump’s economic policy is threatening the US economy and its reputation overseas, the Dean of Harvard Business School has warned.

Nitin Nohria said globalisation had benefited the US and warned against the attraction of “isolationism”.

Highlighting what he said was the “declining interest” of non-Americans wanting to study in the US, Mr Nohria said it was vital that immigrants continued to see the country as an attractive destination.

A recent survey found that 40 per cent of US universities saw a drop in foreign applicants this year.

Writing in the Financial Times, Mr Nohria, who grew up in India and moved to the US to study, said he “understood” why “President Donald Trump’s anti-immigration tone has found an audience” given competition for jobs.

But he said turning away from globalisation risks damaging the US economy.

“The debate over globalisation also raises questions about the responsibilities and costs of leadership — a role the US seems less inclined to play”, he said. “Effective global leadership requires generosity, inspiration, openness and a view that transcends a tit-for-tat, zero-sum mindset.

“It requires moving from a self-centred to an other-oriented viewpoint, and prioritising creating value (increasing the size of the pie) rather than claiming value (battling for your share of it). We must also recognise how much deference we receive from other nations because of our past generous global leadership. Isolationism threatens to strip away the negotiating leverage we’ve earned from our leadership over many decades.”

Mr Nohria suggested the “ambitions and aspirations” linked to globalisation were part of “the American dream”.

“Part of our reputation for global leadership stems from our openness, which is at the heart of our ability to create innovative products and services,” he said.

“People abroad view America as a place with unprecedented socio-economic mobility, and this perception leads ambitious people to immigrate here. More than 50 per cent of Silicon Valley start-ups have an immigrant co-founder, and it’s essential that we continue to attract these imaginative people. America needs to maintain its status as the destination for the most ambitious immigrants.”

Mr Trump has been criticised for his strong rhetoric on immigration, including imposing a ban on immigration to the US from seven mainly-Muslim countries. He has also vowed to tackle illegal immigration from Mexico and deport millions of undocumented migrants currently living in the US.

The Republican leader has also spoken of stepping back from the US’s global commitment in order to pursue a strategy of “America first”.

During his inaugural address in January, he said: “For many decades, we’ve enriched foreign industry at the expense of American industry. The wealth of our middle class has been ripped from their homes and then redistributed all across the world.”