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Watchdog Says Trump Tariff Pause Lays Bare 'Just One More Con on Working People'
"All he has shown is that he'll cave to Wall Street's hand-wringing and prioritize his own power over real people's plight," said one expert at Public Citizen.
Apr 09, 2025
"Trump's 'will he, won't he' tariff chaos is just one more con on working people."
That's what Melinda St. Louis, Global Trade Watch director at the watchdog group Public Citizen, said in a Wednesday statement after U.S. President Donald Trump announced a 90-pause for what he has called "reciprocal" tariffs, excluding China.
"He claimed that the so-called 'reciprocal tariffs' would protect American jobs, but these reckless tariffs were never designed to do that," she said of Trump. "He just wants to wield threats as a schoolyard bully while giving his billionaire buddies sweetheart deals."
St. Louis warned that "when he says he's going to 'negotiate,' he means more harmful free trade agreements that double down on the failed trade model he claims to oppose and that force countries to gut public interest protections for the benefit of Big Tech, Big Pharma, and other corporate giants."
"Who's left out of his megalomaniacal game? The workers he claimed to support."
"And he wants U.S. companies to beg for exemptions from his tariffs, as they did in his first term. This is all part of Trump's authoritarianism and corruption, forcing countries and businesses to bend the knee just as he is doing with law firms and universities," she stressed. "Who's left out of his megalomaniacal game? The workers he claimed to support. All he has shown is that he'll cave to Wall Street's hand-wringing and prioritize his own power over real people's plight."
St. Louis wasn't alone in continuing to blast Trump's tactics around tariffs, which have led some economists to conclude that the president does not actually even understand how international trade works.
"It took a month to 'negotiate a deal,' but it only took one day for Trump to hit the brakes on his nonsensical new tax on autos from Canada and Mexico," Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) said in a Wednesday statement. "This endless flip-flopping and bluster is just further proof that Donald Trump has no economic strategy beyond slapping tariffs on our trading partners."
"Instead of coming up with a real plan to get American workers a fair shake, he's making the United States into an international joke and driving up prices for U.S. consumers," he added. "If Republicans in Congress allow him to keep this up, Trump will keep yo-yoing on tariffs and using threats to pressure U.S. companies to stay in line instead of fighting back against this senseless economic war on American families."
Sen. Bernie Sanders (I-Vt.), a longtime critic of "disastrous unfettered free trade deals," said in a lengthy statement that "targeted tariffs can be a powerful tool to stop corporations from outsourcing American jobs... But Trump's chaotic across-the-board tariffs are not the way to do it."
"What Trump is doing is unconstitutional. Trump has claimed supposed 'emergency' powers to bypass Congress and impose unilateral tariffs on hundreds of countries... This is another step toward authoritarianism," the senator asserted. "And let's be clear about why Trump is doing all this: to give massive tax breaks to billionaires."
"These tariffs will cost working families thousands of dollars a year, and Trump plans to use that revenue to help pay for a huge tax break for the richest people in America. That is what Trump and Republicans in Congress are working on right now: If they have their way on the tariffs and their huge tax bill, most Americans will see their taxes go up, while those on top will get a huge tax break," he added. "Enough is enough. We need a coherent trade policy that puts working people first."
Despite warnings that the costs of his planned tariffs would be passed on to consumers, Trump unveiled the duties last week, causing stocks to plummet and fueling recession warnings and speculation that he's tanking the economy on purpose.
Trump's tariffs took effect at midnight Wednesday. By the early afternoon, the president declared a partial pause via his Truth Social platform. He said that more than 75 countries have reached out "to negotiate a solution."
In clarifying comments to reporters on Wednesday, U.S. Treasury Secretary Scott Bessent said that the 10% baseline tariffs will remain in effect, but higher duties targeting various nations are suspended. He also reiterated that the administration's message is, "Do not retaliate, and you will be rewarded."
The exception to the pause is China, which initially hit back by announcing 34% import duties on American goods last Friday. Faced with Trump's 104% rate on Wednesday, China hiked that to 84% and imposed restrictions on 18 U.S. companies.
Trump wrote on social media Wednesday that "based on the lack of respect that China has shown to the World's Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately."
The Chinese government issued a travel advisory on Wednesday, saying in a statement, "Recently, due to the deterioration of China-U.S. economic and trade relations and the domestic security situation in the United States, the Ministry of Culture and Tourism reminds Chinese tourists to fully assess the risks of traveling to the United States and be cautious."
The Hill reported that during a Wednesday press briefing, Lin Jian, China's Foreign Affairs spokesperson, said that "the U.S. is seeking hegemony in the name of reciprocity, sacrificing the legitimate interests of all countries to serve its own selfish interests, and prioritizing the U.S. over international rules. This is typical unilateralism, protectionism, and economic bullying."
"The abuse of tariffs by the United States is tantamount to depriving countries, especially those in the Global South, of their right to development," he added.
Before Trump announced the pause, the European Union was planning to respond to Trump's steel tariffs with "levies of up to 25% on a sweeping list of U.S. products," The Washington Postreported. "There was no immediate comment from the European Union, and it was unclear how Trump's latest announcement might affect the E.U. countermeasures approved Wednesday."
Although stocks soared after Trump's pause announcement, many experts remain skeptical and demanded transparency around the administration's global trade talks.
"Absent transparency about what is being demanded, we could end up with the worst of all outcomes—a bunch of bad special interest deals, all of the economic damage caused by tariff uncertainty and no trade rebalancing, U.S. manufacturing capacity, or goods jobs," said Lori Wallach, director of the Rethink Trade program at the American Economic Liberties Project, in a Wednesday statement.
"The Trump administration could be striking deals with dozens of countries, but absent transparency, the public will not know whether their interests or Trump's billionaire Cabinet and friends on Wall Street or his family are being served," she pointed out. "Deals must focus on addressing the mercantilist practices that some countries employ, which fuel the extreme global trade imbalances that have deindustrialized the United States and today deny the benefits of trade to numerous countries worldwide."
Wallach emphasized that "the Trump administration must not use these talks to bully countries into gutting their online privacy and Big Tech anti-monopoly policies or undermining their food safety, health, or environmental laws."
"The chaos of these whipsaw tariffs flip-flops is already causing economic chaos and losses, undermining confidence in America and our markets," she added. "Cutting deals in secret only adds to that uncertainty and risks corruption, which won't just hurt Trump's stated goal of investment in U.S. manufacturing but the economy as a whole."
While experts like Wallach call for transparency in the tariff process, many congressional Republicans are working to further empower Trump. Nearly all GOP members of the U.S House of Representatives
voted Wednesday for a rule that blocks lawmakers' ability to force a vote on repealing the president's import duties for 90 days.
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A Week After Hiking Trump Recession Odds, Goldman Sachs Does It Again
"Trump and House Republicans are crashing the economy, raising your cost of living, and driving us toward a recession," said the chamber's top Democrat. "What happened to the so-called golden era of America?"
Apr 07, 2025
A week after Goldman Sachs raised the chance of a U.S. recession in the next 12 months from 20% to 35%, the Wall Street giant elevated it to 45% on Sunday, following President Donald Trump's worse-than-anticipated tariff announcement.
Goldman Sachs' note—tilted, Countdown to Recession—points to "a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty that is likely to depress capital spending by more than we had previously assumed."
The analysis is based on expectations that negotiations early this week will lead to "a large reduction in the tariffs" that Trump is set to impose on Wednesday. If that doesn't happen, Goldman's forecast is expected to change for the worse.
Since Trump's "Liberation Day" announcement last Wednesday, "at least seven top investment banks have raised their recession risk forecasts," Reutersnoted Monday, "with JPMorgan putting the odds of a U.S. and global recession at 60%, on fears that the tariffs will not only ignite U.S. inflation but also spark retaliatory measures from other countries, as China has already announced."
China initially responded to Trump on Friday with 34% import duties on all American goods. The U.S. president hit back on Monday, further escalating his trade war with the Chinese government by threatening to impose an additional 50% tariff. Citing a White House official, CNBCpointed out that "U.S. tariffs on China will total 104% if Trump's latest threat takes effect."
Trump wrote in a Truth Social post: "Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately."
Stocks have plummeted over the past week, and were "swinging Monday following a manic morning where indexes plunged, soared, and then sank again as Wall Street tossed around a false rumor," The Associated Pressreported.
"A White House account on X said a rumor circulating that Trump was considering a 90-day pause on his tariffs was 'fake news,'" the AP continued. "The intense and sudden moves show how hard financial markets are straining to see hopes that Trump may let up on his stiff tariffs, which economists see raising the risks of a global recession."
While progressive economists and working-class people have highlighted how Trump's "batshit crazy" tariffs are expected to impact everyday Americans—as the cost of the duties are passed on to consumers—many executives are also blasting the president's policy.
One respondent to a CNBC CEO Council survey called Trump's tariffs "disappointingly stupid and illogical," and said that "without faith that our government knows what it is doing, it is impossible for businesses to thrive."
According to CNBC, other CEO responses included:
- "This is the Trump recession."
- "Trump has imposed tariffs on component parts that are simply unavailable in the U.S. and never will be. He has surrounded himself with an incompetent cadre of yes men and women unable or unwilling to offer him cogent counsel."
- "We imagine that our suppliers will have to swallow part of the tariff, and we will have to pass on part of the tariff to our customers. We are controlling what we can control, pricing and sourcing decisions. We can't control the impact of tariffs on the consumer mindset, which we imagine could be significant."
Democrats in Congress also continued to call out the Republican president on Monday.
"Trump and House Republicans are crashing the economy, raising your cost of living, and driving us toward a recession,"
said the chamber's minority leader, Rep. Hakeem Jeffries (D-N.Y.). "What happened to the so-called golden era of America?"
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Trump's Tariffs: Crony Capitalism and the New Economy of Obedience
These tariffs may be framed as populist, but they function as pipelines of wealth transfer from the working and middle classes to the ultra-rich.
Apr 07, 2025
Donald Trump's latest barrage of tariffs—levied against imports from China, the EU, Mexico, Canada, and the UK—has triggered a global wave of panic. Stock markets are tumbling, trade relationships are unraveling, and the threat of recession is once again stalking the global economy. JPMorgan recently raised its probability of a U.S. recession to 60%, while the BBC notes that U.S. consumers are already facing higher prices on cars, electronics, and everyday goods.
UK business groups have warned that the tariffs will cause "untold damage" to exports and jobs. Market observers describe the mood as “carnage,” with Wall Street plunging and currencies in freefall. Economists, bewildered by the self-inflicted harm, are questioning the logic. As The Guardian succinctly put it: “In economic terms, Trump’s tariffs make no sense at all.”
But perhaps the key is to stop viewing them as economic policy at all.
Behind the official rhetoric lies a more disturbing pattern: the weaponization of the global economy to reshape alliances, weaken opposition, and consolidate elite control.
Instead, what we are witnessing is a shift in how political and economic power is wielded. Trump's tariffs are less about economic advantage than they are about “power.” They are the instruments of a broader authoritarian project—one that uses economic coercion not as a last resort, but as a first principle.
The Trump administration has framed this crisis as a defense of “national sovereignty,” declaring a state of emergency in order to impose sweeping new trade restrictions. But behind the official rhetoric lies a more disturbing pattern: the weaponization of the global economy to reshape alliances, weaken opposition, and consolidate elite control.
Crony Capitalism Disguised as Protectionism
Trump’s tariffs are not random acts of economic aggression. They are carefully placed tools of political leverage—intended to punish dissent and reward obedience. Want your country's exports to avoid a crushing levy? Then align your foreign policy with Trump's vision. Need your factory spared from punishing steel tariffs? Show loyalty, cut a deal, make a donation.
This is not free market capitalism. It is feudalism with a corporate gloss—where tariff exemptions and trade deals are handed out not on merit, but on allegiance. Indeed even before the announcement, corporations with the right connections in Washington have already begun receiving favorable treatment. The message is clear: if you want to survive in this economy, loyalty to the throne is not optional—it’s the business model.
This isn’t just Trump’s strategy. It is the strategy of an emerging capitalist class that thrives in the dark.
This marks a dangerous transformation. Trump is not merely using tariffs to "bring jobs home"; he is building a new global order in which power is centralized around his persona, and economic access becomes a form of tribute. Allies are not negotiated with, they are enlisted. Enemies are not competed against, they are sanctioned into submission.
Countries like Mexico and Canada are being strong-armed into renegotiating deals that favor Trump’s domestic base. China, meanwhile, has responded with its own retaliatory tariffs and accusations of “economic bullying.” The global trade system is no longer rules-based—it’s relationship-based, and Trump is the gatekeeper.
This dynamic has a name – what I refer to as the rise of the “authoritarian-financial complex”: a hybrid of autocracy and capital, in which markets are no longer neutral platforms of exchange but battlegrounds of loyalty and domination. State power is weaponized not to serve the public good but to enrich a loyal elite through coercive economic tools and manufactured crises. It marks a shift from an imperialist market-driven global capitalist system to a new era where authoritarianism itself becomes profitable —an industry of control that turns state repression, economic chaos, and political loyalty into revenue streams for the ruling elite.
Manufacturing Crisis as an Investment Opportunity
If the tariffs seem irrational through the lens of traditional economics, they make perfect sense when viewed through the lens of crisis capitalism. This is the playbook: manufacture a disruption, create volatility, and let the well-positioned profit from the fallout.
This is not new. Neoliberal elites have long used crises—whether natural, financial, or geopolitical—as opportunities to restructure economies in their favor. The goal is not to prevent crises but to own them, to turn social and economic catastrophe into a series of privatized gains.
During the COVID-19 pandemic, this model was on full display. Private equity and hedge funds disproportionately bought up distressed housing, healthcare companies, and struggling small businesses, consolidating enormous power under the guise of “recovery.”
Trump’s tariff war extends this logic to the international stage. The goal is not to fix the global economy—it’s to turn it into a distressed asset. As markets crash and trade routes collapse, investors tied to the Trump network can scoop up undervalued assets, exploit government stimulus, and re-sell them at massive profits. It's asset stripping on a global scale.
This moment demands clarity. Tariffs that punish enemies and reward friends are not about economic justice—they are tools of elite extraction.
This is why financial markets are not merely reacting to trade uncertainty—they’re anticipating a redistribution of power. The market’s negative response reflects not just fear of economic pain, but recognition that policy now depends on political favor, not stability or reason.
And who pays the price? Ordinary people—through inflation, layoffs, decimated pensions, and rising costs of living. These tariffs may be framed as populist, but they function as pipelines of wealth transfer from the working and middle classes to the ultra-rich.
The New Economy of Obedience
So what are we really looking at? A trade war? A nationalist economic pivot? No. We are witnessing the consolidation of a new form of capitalism—one that fuses state violence, elite finance, and populist spectacle into a coherent, brutal system of control.
Trump’s tariff policies are the scaffolding of a much larger project: to reshape the world economy in a way that rewards loyalty, crushes opposition, and turns crisis into capital. They are not the exception. They are the future—unless they are stopped.
This moment demands clarity. Tariffs that punish enemies and reward friends are not about economic justice—they are tools of elite extraction. The markets are not crashing because Trump miscalculated. They are crashing because the system is being reset. And when the smoke clears, the question is not who will pay the price, but who will own the wreckage.
What is needed is more than hand-wringing about GDP or interest rates. It requires a reckoning with the fact that our economic future is being deliberately reshaped by those who view democracy itself as a distressed asset. The true cost of Trump’s tariffs isn't measured in trade deficits or consumer prices. It’s measured in the dismantling of a rules-based global order in favor of a patronage-driven, authoritarian regime of elite extraction.
This isn’t just Trump’s strategy. It is the strategy of an emerging capitalist class that thrives in the dark. And unless we confront it directly, they won’t just own the crisis—they’ll own us too.
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