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'Welp, There Goes the Economy': Trump Tariffs Trigger Global Alarm
"He's taking a sledgehammer to the economy and pursuing unpopular, reckless trade policies that will do nothing to benefit workers and only serve to increase costs for consumers," warned one expert.
Apr 02, 2025
After U.S. President Donald Trump announced long-anticipated sweeping tariffs at the White House Rose Garden on Wednesday, economists, labor leaders, American lawmakers, and other critics reiterated that the move will negatively impact people worldwide.
The president revealed that on April 5, he will impose a 10% tariff on all imported goods and additional penalties for dozens of countries, including major trading partners—ignoring warnings that, as Jeffrey Sachs wrote in a Common Dreams opinion piece, his "tariffs will fail to close the trade and budget deficits, raise prices, and make America and the world poorer."
Trump's related executive order states that he finds "that underlying conditions, including a lack of reciprocity in our bilateral trade relationships, disparate tariff rates and nontariff barriers, and U.S. trading partners' economic policies that suppress domestic wages and consumption, as indicated by large and persistent annual U.S. goods trade deficits, constitute an unusual and extraordinary threat to the national security and economy of the United States."
The order adds that the "threat has its source in whole or substantial part outside the United States in the domestic economic policies of key trading partners and structural imbalances in the global trading system," and declares a national emergency.
NBC Newsreported Wednesday that "global markets reacted sharply and swiftly... with investors fleeing U.S. stock indexes and companies that rely on global supply chains seeing their stocks plummet." The outlet noted that Dan Ives, an analyst at the investment firm Wedbush Securities, wrote, "President Trump just finished his tariff speech at the White House and we would characterize this slate of tariffs as 'worse than the worst case scenario' the street was fearing."
Trump framed this step in his trade war as "liberation day" and claimed that the duties are "reciprocal," but economists pushed back. Justin Wolfers at the University of Michigan said: "Trump announces his tariffs, which are (somehow?) related to the trade barriers other countries are imposing on the U.S. But... THE NUMBERS HE'S PRESENTING BEAR NO RELATION TO REALITY. It would be absurd to call these reciprocal tariffs. They're grievances."
Groundwork Collaborative executive director Lindsay Owens
said in a statement that "Americans have one simple request of President Trump: lower prices. Instead of answering the call, he's taking a sledgehammer to the economy and pursuing unpopular, reckless trade policies that will do nothing to benefit workers and only serve to increase costs for consumers."
"But Trump doesn't care about what happens to working families, as long as his billionaire donors and advisers are happy," she continued. "Republicans are already
chomping at the bit to use any potential tariff revenue to fund their next massive billionaire tax break."
Kobie Christian, a spokesperson for the national campaign Unrig Our Economy, similarly concluded that "there is no other way to say it—this is an out-of-touch policy designed by a billionaire and for billionaires."
"Virtually no one will benefit from these Republican-backed tariffs—except for the ultrawealthy who will get yet another tax break, paid for by working families," Christian added. "Small business owners will be forced to raise their prices to keep their businesses afloat, and Americans will have to pay even more for everyday goods. These tariffs could even push the economy into a recession. American workers need lower costs, not more tariffs and billionaire handouts."
American Economic Liberties Project's Rethink Trade director, Lori Wallach, declared that "the businesses that profiteered from our old broken trade system should pay for the necessary transition to more balanced trade, not American workers and consumers. President Trump must take immediate action to stop corporations from using the pretext of these tariffs to price gouge the very Americans already slammed by decades of bad trade policy and corporate greed."
Wallach was among those who pointed out that tariffs can be a vital tool. She explained that "Trump's announcement goes much broader, but tariffs against mercantilist countries like China, Germany, Korea, Taiwan, and Japan to counter systemic trade abuses can help restore America's capacity to produce more of the critical products needed for American families to be healthy and safe and for our country to be more resilient and secure."
"But to deliver more American production and good jobs, the goal must be to balance trade, not equalize tariff rates, and tariffs must be consistent," she stressed. "Tariffs must be accompanied by other industrial policies like tax credits to build demand for U.S.-made goods, incentives for investment in new production capacity and bans on stock buybacks, and easier union formation so gains go to wages, not just profits."
The only thing being liberated today is money from the bank accounts of hard-working Americans.
— Robert Reich ( @rbreich.bsky.social) April 2, 2025 at 5:21 PM
Liz Shuler, president of the AFL-CIO, the nation's largest federation of unions, also said that "the strategic use of tariffs can be an effective tool to support our industries and protect jobs at home. But they must be accompanied by policies that invest in our manufacturing base and a strong commitment to promoting workers' fundamental right to organize trade unions and bargain collectively."
"Unfortunately, the Trump administration's attacks on trade union workers' rights at home, gutting of the government agency that works to discourage the outsourcing of American jobs, and efforts to erode critical investments in U.S. manufacturing take us backward," she asserted. "We will continue to fight for trade policy that prioritizes the interests of working people without causing unnecessary economic pain for America's working families."
Some congressional Democrats shared similar criticism. Michigan Congresswoman Debbie Dingell said that "when used strategically, tariffs are a critical tool to bring back jobs and support American workers and industries," but "I'm concerned about the chaotic and immediate implementation of these wide-reaching tariffs."
U.S. Rep. Jimmy Gomez (D-Calif.)
wrote on social media that "Trump's dumb tariffs are going to drive up costs for real working people. Like the dad who is trying to save money by fixing his car at home. Those parts from AutoZone are made somewhere else and the prices will go up!"
As the White House circulated a multipage sheet of targeted countries, Gomez and Rep. Sean Casten (D-Ill.) were among those who noticed that Russia—which is waging a yearslong war on Ukraine—is absent from the list.
Meanwhile, as critics including Aaron Reichlin-Melnick at the American Immigration Council highlighted, the list included the Australian territory of the Heard Island and McDonald Islands—even though the islands are "completely uninhabited."
"Population zero. I guess we're going to tariff the seagulls?" quipped Reichlin-Melnick. "It kind of feels like a White House intern went through Wikipedia's list of countries and just generated this list off of that with no further research."
Organizer Max Berger
wrote on Bluesky Wednesday, "I like how no one knows whether the president of the United States is going to tank the global economy because he's a fucking idiot—or if he's just doing a bit."
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As Economic Indicators Point to Recession, Trump Moves to Hide Key Data From Public
"Unfortunately tossing a scarf over the GDP numbers doesn't change the fact that their policies have us careening toward a downturn."
Mar 21, 2025
All signs are pointing to a coming recession as U.S. President Donald Trump imposes tariffs on close trading partners, oversees mass firings of civil servants, and pushes for cuts to public services—but by firing economists, advisers, and other experts tasked with advising federal agencies on economic shifts, the administration is working to ensure that the government and the public can't read those signs.
As Politicoreported Friday, experts serving on the Bureau of Labor Statistics' (BLS) Technical Advisory Committee were informed this week that they were no longer needed, leaving the BLS without a panel that has long advised the Labor Department on how economic changes can impact data collection.
A page for the committee was removed from the Labor Department's website, along with one that had information about the Data Users Advisory Committee, which has advised on how businesses and policymakers can use the agency's economic reports.
"It would be a bad sign for a software company to cancel all beta testing if you expect to keep making better software," Michael Madowitz, an economist at the Roosevelt Institute who served on the data users committee, told Politico. "This feels like the same sort of thing."
The dismissal of the advisers follows the disbanding by Commerce Secretary Howard Lutnick of another advisory board that has worked for years to ensure the government produces accurate data on economic indicators—the Federal Economic Statistics Advisory Committee (FESAC), which worked under the Commerce Department's Bureau of Economic Analysis.
"If laying off tens or hundreds of thousands of federal workers is going to drag down macroeconomic indicators in ways that are unhelpful to them, they're apparently quite willing to just rewrite definitions so they can insulate themselves to the extent possible from the fallout."
"Reduced transparency in official statistics is perhaps the most troubling aspect of disbanding FESAC," wrote Claudia Sahm, a former Federal Reserve economist, at Bloomberg on March 11. "Cutting off agency staff from external advisers creates an environment where political interference could occur much more easily—and go undetected. With political officials such as Lutnick arguing publicly that GDP should exclude government spending, it is especially important to have external, independent experts."
On Wednesday, the Federal Housing Finance Authority also placed workers who helped compile its home price index on administrative leave.
The dismantling of much of the federal government's data analysis apparatus comes amid the illegal firing of the two Democratic members of the Federal Trade Commission just after one called on FTC Chair Andrew Ferguson to take 10 steps to lower prices for U.S. consumers.
"This administration wants to write its own narrative," Stephanie Kelton, a professor of economics and public policy at Stony Brook University, toldThe Nation after the disbanding of FESAC. "If laying off tens or hundreds of thousands of federal workers is going to drag down macroeconomic indicators in ways that are unhelpful to them, they're apparently quite willing to just rewrite definitions so they can insulate themselves to the extent possible from the fallout."
The latest advisory committee firings this week came as the Federal Reserve projected higher unemployment, faster inflation, and slower growth—or "stagflation." Economic growth this year was projected to be 2.1% in the last weeks of former President Joe Biden's administration; the Fed now expects 1.7% growth, as well as the unemployment rate rising to 4.4%.
Other negative economic indicators include the largest manufacturing decline in nearly two years, according to the New York Federal Reserve's Manufacturing Index, and declining consumer confidence, with bars and restaurants reporting their largest sales decline last month since February 2023.
Members of Trump's own administration are increasingly admitting that a recession could be in the near future, but as Lindsay Owens, executive director of progressive think tank Groundwork Collaborative, said Friday, "the Trump administration is testing whether you can prevent a recession with a disappearing act."
"Unfortunately tossing a scarf over the GDP numbers doesn't change the fact that their policies have us careening toward a downturn," said Owens. "The fact that they are ramping up their obfuscation tactics confirms it."
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Economist Says Fed Warning Shows Trump Driving US Economy 'Toward Disaster'
"Launching chaotic trade wars with our allies and gutting Social Security, Medicaid, and other vital programs in order to fund tax breaks for his billionaire donors isn't making life more affordable for working-class families."
Mar 19, 2025
A former Obama administration economic adviser said Wednesday that the Federal Reserve's forecast of increased unemployment, accelerating inflation, and slower growth driven by President Donald Trump's economic policies could portend a return of the "stagflation" that plagued the nation in the 1970s.
The Federal Open Markets Committee, which sets U.S. monetary policy, downgraded its economic outlook for 2025 from an initial projection of 2.1% growth to 1.7%. FOMC also revised its inflation forecast upward from 2.5% to 2.8%.
While FOMC said that "recent indicators suggest that economic activity has continued to expand at a solid pace," the committee noted that "uncertainty around the economic outlook has increased."
Fears of an economic slowdown or even a recession have increased dramatically since Trump took office and imposed tariffs on some of the nation's biggest trade partners while moving to gut critical social programs in order to fund a $4.5 trillion tax cut that will overwhelmingly benefit wealthy Americans.
"Inflation has started to move up now. We think partly in response to tariffs and there may be a delay in further progress over the course of this year," Federal Reserve Chair Jerome Powell said during a Wednesday news conference, at which he said interest rates will remain unchanged. "The survey data [of] both household and businesses show significant large rising uncertainty and significant concerns about downside risks."
The economic justice group Groundwork Collaborative said the FOMC projections show that "Trump is steering our economy toward disaster," while warning of the possible return of stagflation, a combination of low or negative economic growth and inflation.
Alex Jacquez, the chief of policy and advocacy at the Groundwork Collaborative and a former adviser at the White House National Economic Council during the Obama administration, said in a statement that "the Federal Reserve's projections confirm what millions of Americans are already thinking: President Trump is steering our economy toward disaster."
"Voters elected President Trump to lower the cost of living, and instead, they continue to be saddled with persistently high inflation and interest rates," Jacquez continued. "Launching chaotic trade wars with our allies and gutting Social Security, Medicaid, and other vital programs in order to fund tax breaks for his billionaire donors isn't making life more affordable for working-class families. It is, however, a perfect recipe for stagflation."
Trump's economic policies—which some observers believe could be designed to deliberately tank the economy so that the ultrawealthy can buy up assets at deep discounts—have sent consumer confidence plummeting. Meanwhile, recent polls have revealed that a majority of voters disapprove of Trump's handling of the economy and inflation.
The latest FOMC forecast came as the world braces for yet another escalation of Trump's trade war, with the president threatening to implement worldwide reciprocal tariffs starting April 2.
The Organization for Economic Cooperation and Development (OECD) said Monday that Trump's trade war is likely to slow economic growth in the United States and around the world.
"The global economy has shown some real resilience, with growth remaining steady and inflation moving downwards," OECD Secretary-General Mathias Cormann said. "However, some signs of weakness have emerged, driven by heightened policy uncertainty."
"Increasing trade restrictions will contribute to higher costs both for production and consumption," Cormann added. "It remains essential to ensure a well-functioning, rules-based international trading system and to keep markets open."
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