US President Donald Trump’s tariff surge has been called a costly tax on American consumers and a boost to inflation, former IMF chief economist Gita Gopinath warned on Wednesday.
Trump declared “Liberation Day” on April 2 and, using the International Emergency Economic Powers Act, slapped steep tariffs on a wide range of imports. His goal was to end what he called “decades of unfair trade barriers” and give U.S. producers a competitive edge.
But six months on, the results have fallen short of his promises. Gopinath, sharing her assessment on the social‑media app X, said the tariffs have not improved the trade balance or spurred manufacturing growth. She summed up the scorecard:
- Revenue – The tariffs have worked like a tax on U.S. firms and, in part, on consumers, adding revenue for the government.
- Inflation – Prices for household goods, furniture, coffee and other items have risen, adding to overall inflation.
- Trade balance – No sign of improvement so far.
- Manufacturing – No noticeable boost in U.S. production.
“Overall, the score card is negative,” said Gopinath, a Harvard economics professor.
The U.S. has also hit other countries. India faced a 25 % tariff in July, plus an extra 25 % excise duty on Russian oil in August. On September 26, Trump announced a 100 % tariff on branded and patented pharmaceuticals slated to start on October 1, unless the companies build U.S. factories.
The debate continues as U.S. policymakers weigh the costs and benefits of these trade measures.
Source: ianslive
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