President Donald Trump's former economic advisor and author of "Trumponomics," Stephen Moore, criticized the tariffs imposed by the Trump administration.
Trump Tariffs Leading To Increased Costs, Says Moore
Moore argues that these tariffs have adversely affected the U.S. economy, leading to increased costs for businesses and consumers.
Moore, who was instrumental in shaping Trump’s economic policies, expressed concerns over the tariffs’ impact on GDP and rising prices. He described tariffs as detrimental taxes, according to a report by Fortune.
"Well, guess what? We put a 50% tariff on coffee. So, yeah, the coffee price went up," he said.
Medium-Sized Manufacturers Particularly Affected, Says Moore
Moore emphasized that medium-sized manufacturers have been particularly affected, citing a Wall Street Journal article that reported a significant rise in coffee prices due to a 50% tariff.
Data from the New York Fed supports Moore’s claims, indicating that many firms have passed tariff costs onto consumers. The Yale Budget Lab reported a 2.3% increase in the overall U.S. price level due to new tariffs, resulting in a $3,800 loss in household purchasing power.
Despite these challenges, Moore acknowledged that the U.S. economy has not entered a recession as some economists predicted. He credited other Trump policies, such as energy expansion and deregulation, for offsetting the negative effects of tariffs.
However, Moore remains concerned about Trump’s direct interventions in pricing, which he believes deviate from free-market principles.
"The best policy is always to have a system that benefits everyone," he said. "It shouldn't pick winners and losers."
Trump Tariffs Under Increasing Scrutiny
The criticism from Moore comes at a time when the economic impact of Trump’s tariffs is increasingly under scrutiny. The Federal Reserve’s Beige Book recently highlighted that these tariffs are leading to higher costs for businesses, with many passing the financial burden onto consumers. Despite this, the broader risks of a recession remain low, according to analysts.
Moreover, the economic landscape is further complicated by a surge in investment in artificial intelligence (AI), which is masking the full negative impact of the tariffs. According to experts, while AI is propping up growth figures, other industries are quietly suffering under the weight of trade duties.
Investor Kevin O’Leary has also weighed in, urging Trump to focus on preserving the American dream rather than targeting specific industries. O’Leary emphasized that capitalism, despite its flaws, remains the best system for everyone.
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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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