President Donald Trump's recent decision to roll back specific tariffs to combat soaring consumer costs constitutes a “remarkable admission” that his signature trade policies have directly fueled inflation, argues prominent economist Justin Wolfers.
Trump Administration Knew The Implications Of Tariffs On Prices
Wolfers, a University of Michigan professor and Brookings Institution Senior Fellow, contends the administration’s selective tariff cuts reveal they privately understand basic economic principles, even while publicly downplaying the severity of inflation.
In an analysis highlighted on X, Wolfers noted the inherent contradiction of an administration that heavily promoted tariffs, now cutting them to provide price relief.
“If they’re rolling back some of the tariffs, that’s a sign that they understand the tariffs are not helpful,” Wolfers stated in an accompanying video interview.
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Rollbacks Are A ‘Remarkable Admission’
He characterized the sudden policy shift as a “remarkable admission” that the President has finally learned what undergraduate students learn in “Econ 101, which is, tariffs raise prices.”
Wolfers posed a critical question regarding the administration’s logic: If cutting a few highly visible tariffs helps affordability, what do they believe the massive amount of tariffs remaining in place is currently doing to consumer prices?
Rising Prices Lead To Tariff Modifications
This economic critique comes against the backdrop of a worsening “affordability crisis” in November 2025.
Facing intense pressure over high grocery bills and polls showing voters blame him for the economy, President Trump recently issued executive orders eliminating tariffs on certain Brazilian exports and lowering duties on agricultural imports like beef, coffee, and tomatoes. –
Rollbacks Erase $800 Billion In Expected Debt Reduction
While intended to ease immediate consumer pain, these emergency rollbacks come at a high long-term fiscal cost.
According to new projections released by the Congressional Budget Office (CBO), these recent tariff reductions have erased nearly $800 billion in anticipated national debt reduction over the next decade, significantly altering the administration’s budget outlook.
Wolfers further argued that Trump's economic approach has shifted away from broad free-market principles toward a system relying on granting access and favors to “big behemoths”—referencing Trump calling Apple Inc.‘s (NASDAQ:AAPL) CEO Tim Cook “Tim Apple”—which disadvantages smaller, innovative competitors who lack direct lines to the White House.
On Wednesday, the futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher after a positive close on Tuesday.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Wednesday. The SPY was up 0.29% at $677.01, while the QQQ advanced 0.36% to $611.10, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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