President Donald Trump declared “Liberation Day” tariffs, igniting a whirlwind of critiques from economists and market experts. Concerns have arisen regarding the tariffs’ potential impact on the economy, with some commentators advocating a strategy to “sell the dip” instead of purchasing stocks, predicting little likelihood of a Trump reversal.
Joshua Bolten, CEO of the Business Roundtable, underscored the risk these tariffs pose to American manufacturers and families, urging for reasonable exemptions and a transparent exclusion process. He acknowledged Trump’s intent for fairer trade but was wary of the tariffs’ long-term damage.
Former Treasury Secretary Larry Summers went further, asserting that the rhetoric behind the tariffs could lead to around $30 trillion in economic loss, describing them as some of the most harmful the US has seen in decades.
Mohamed El-Erian, former CEO of Pimco, highlighted that the swift market reactions following the tariff announcement reflect broader fears about global economic growth. Mariana Mazzucato estimated that these tariffs could cost US families between $1,700 and $5,000, diminishing both consumer power and inflating prices.
Boaz Weinstein expressed certainty that Trump would not retract the tariffs, reiterating that it is a “sell-the-dip” situation. David Rosenberg critiqued the concept of making America wealthy again, noting the record level of national net worth and questioning the past economic conditions.
Nouriel Roubini dismissed the term “Liberation Day” as “Orwellian doublespeak,” predicting negative effects, including higher inflation and lower growth, describing the tariffs as lacking any form of liberation for consumers or businesses. Lastly, Nobel Prize-winning economist Paul Krugman expressed scepticism towards Trump’s willingness to temper the announced tariffs, labelling the proposals as absurd and full of inaccuracies.
Trump’s “Liberation Day” tariffs have drawn strong criticism from economists, who forecast significant economic repercussions including potential losses near $30 trillion. Analysts advise selling stocks rather than buying, expressing concern over inflation and deteriorating consumer power. Experts call for reasonable exemptions while questioning the concept of liberation inherent in the tariffs.
In summary, President Trump’s “Liberation Day” tariffs have triggered a wave of negative feedback from economists and market analysts. Many are concerned about the tariffs’ potential to harm the economy, increase inflation, and diminish consumer purchasing power. As doubts grow over their effectiveness, commentators suggest a cautious approach toward market investments, highlighting the need for transparency in trade negotiations and an awareness of the broader economic implications.
Original Source: africa.businessinsider.com
