Gita Gopinath Rates Trump Tariffs ‘Negative,’ Cites Little Economic Benefit.
Harvard professor and former IMF Chief Economist Gita Gopinath has given a “negative score” to US President Donald Trump’s tariff policy, saying that six months after their implementation, there is little evidence of any promised benefits. She noted that the tariffs, intended to bolster American manufacturing, have largely acted as a tax on US firms and consumers.
“It has been six months since the ‘Liberation Day’ tariffs. What have they accomplished? Revenue for the government? Yes, but borne mostly by US firms and passed partially to consumers. Inflation? Slight increases overall, more so for household appliances, furniture, and coffee. Trade balance or manufacturing improvement? No signs yet. Overall, the scorecard is negative,” Gopinath said.
Trump’s tariffs, introduced on April 2, targeted multiple trading partners with a baseline 10% rate, later expanded to include additional duties. India faced a 25% tariff and a further 25% penalty on Russian crude oil imports. The US also engaged in an escalating tariff war with China, which paused temporarily for resumed trade talks.
Recently, the administration announced a 25% tariff on all medium- and heavy-duty trucks imported into the US from November 1, as part of its continued effort to protect domestic manufacturing.
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