Top Economist Warns Trump's New Tariffs Are 'Same Rotten Policy' in a New Wrapper
The Donald Trump administration has announced new tariffs ranging from 10% to 12.5% on over 60 trading partners, replacing expiring duties under Section 301 of the Trade Act for forced-labor enforcement reasons. University of Michigan economist Justin Wolfers criticized these measures as a continuation of flawed trade policy wrapped in legal adjustments that may survive judicial review but will still harm American consumers and businesses. Wolfers argues that while the administration has improved its legal strategy, it remains economically misguided. He notes that the new tariffs cover over 99% of U.S. imports and are unlikely to improve diplomatic relations or economic outcomes for Americans. The economist also highlights a minimal difference in tariff rates between compliant and non-compliant countries as ineffective diplomacy. The announcement comes amid broader market gains, with major indices like the S&P 500 and Nasdaq Composite up year-to-date. However, Wolfers warns that these tariffs will likely lead to higher consumer prices without delivering significant economic benefits.
Topics: Donald Trump administration economic policy international trade tariffs