Former President Donald Trump’s imposition of tariffs has drawn criticism for failing to deliver intended economic benefits, with analysts arguing that the measures disrupted trade without significantly reducing inflation. While the tariffs led to higher prices in durable goods, they did not push overall inflation substantially higher, according to data from the Cleveland Fed’s Inflation Nowcast. Instead, they prevented inflation from declining to the Federal Reserve’s 2.0% target. The policy is now viewed by many economists as a misallocation of fiscal tools, contributing more to trade friction than to long-term economic stability. Critics suggest that such protectionist measures may have shielded certain domestic industries temporarily but at the cost of broader supply chain inefficiencies and retaliatory actions from trading partners. The durable goods price index reflects this impact clearly, showing sustained upward pressure during the tariff period.
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Trump’s tariffs as fiscal folly – CEPR
Trump’s tariffs as fiscal folly CEPR