In a bold announcement, President Donald Trump declared his “Liberation Day” tariffs, igniting an immediate flurry of reactions from prominent figures in economics and business, as markets swayed precariously. Many believe that these tariffs may inflict serious harm on the U.S. economy, urging a rethink on their implementation. Key voices suggest it might be wise to brace for downturns rather than seek opportunities for investment amid the turmoil.
Joshua Bolten, CEO of the Business Roundtable, expressed grave concerns, stating that the tariffs could significantly damage American manufacturers and families, and emphasised the urgency for better trade negotiations, advocating for reasonable exemptions to soften the blow. Similarly, former Treasury Secretary Larry Summers warned that the financial fallout could escalate to staggering losses of approximately $30 trillion, labelling the tariffs the most burdensome in decades.
Global economic anxiety was echoed by Mohamed El-Erian, former CEO at Pimco, who noted the immediate negative impact on financial markets. Meanwhile, Mariana Mazzucato highlighted the looming threat of inflation, estimating that these tariffs could cost American families between $1,700 to $5,000, thus diminishing their purchasing power.
Others, such as Boaz Weinstein, commented that Trump is unlikely to reverse his stance, suggesting this environment poses more risks than opportunities for investors. David Rosenberg critically reflected on the tariffs’ misleading title, “Make America Wealthy Again,” arguing it suggests a nostalgia for an economic state that never truly existed, as net national wealth reaches an unprecedented $157 trillion.
Nouriel Roubini, echoing a sense of dystopia, dismissed the term “liberation” as mere doublespeak, assuring that these tariffs would not lead to benefits for U.S. consumers or businesses. Paul Krugman labelled the policies as a concerning shift, reflecting on the potential for higher tariff rates and distancing from previously held beliefs about trade. The overall sentiment points to an uphill struggle with the new tariffs, raising concerns for the economy and the population at large.
President Trump’s “Liberation Day” tariffs have prompted critical responses from key economic figures, warning of substantial risks to the U.S. economy. Concerns centre around inflation, decreased purchasing power for families, and the possibility of escalating losses. While some analysts suggest the tariffs could further harm manufacturers and workers, others speculate that reversal of the policy is unlikely, indicating a turbulent economic period ahead.
The reaction to Trump’s “Liberation Day” tariffs is overwhelmingly cautious, with respected figures across the economic landscape urging a reassessment of potential fallout. As fears of inflation rise and economic growth appears threatened, critics highlight the dangers these tariffs pose to American families and global trade. This unprecedented approach signals a stirring debate on the future of U.S. economic policy, calling into question whether the proclaimed benefits truly compensate for the impending challenges.
Original Source: www.businessinsider.com
