Expert Warns of Severe Economic Impact from New Trade Policies
“He’s wielding a wrecking ball against the economy with these unpopular, careless trade policies that will neither help workers nor avoid raising costs for consumers,” an expert cautioned.
When U.S. President Donald Trump announced extensive tariffs in a speech at the White House Rose Garden on Wednesday, a chorus of economists, union leaders, American legislators, and other critics voiced their concerns about the global repercussions.
President Trump disclosed plans to levy a 10% tariff on all imported goods starting April 5, along with additional fines for numerous countries, including key trade allies. He disregarded cautions that, according to Jeffrey Sachs in a Common Dreams commentary, his “tariffs will not solve the trade and budget deficits, will increase prices, and will impoverish both America and the global community.”
The associated executive order from Trump explains his belief that “the existing conditions, such as unreciprocated trade relationships, differing tariff rates and non-tariff barriers, as well as economic policies of U.S. trade partners that suppress domestic wages and consumption, evidenced by large and ongoing yearly U.S. goods trade deficits, pose a unique and extraordinary threat to the national security and economy of the United States.”
This order also states that “the threat largely originates from outside the United States, stemming from the domestic economic policies of principal trading partners and structural imbalances in the international trading system,” and it declares a national emergency.
NBC News reported that “global markets responded immediately and sharply… with investors withdrawing from U.S. stock indices and stocks of companies dependent on global supply chains experiencing significant losses.” The report quotes Dan Ives from Wedbush Securities, who described the tariff announcement as “worse than the worst-case scenario feared by Wall Street.”
Trump called this move in his trade battle “liberation day” and labeled the tariffs “reciprocal,” but economists objected. Justin Wolfers from the University of Michigan remarked, “Trump unveils his tariffs, supposedly in response to trade barriers from other nations. Yet… THE FIGURES HE PRESENTS DO NOT ALIGN WITH REALITY. It’s ludicrous to label these tariffs reciprocal. They are merely grievances.”
Lindsay Owens, executive director of the Groundwork Collaborative, stated, “Americans have one straightforward request for President Trump: reduce prices. Instead, he’s demolishing the economy with unpopular, reckless trade policies that won’t help workers but will only elevate consumer costs.”
“But Trump doesn’t seem concerned about the impact on working families, as long as his billionaire backers and advisors are satisfied,” she added. “Republicans are eagerly waiting to use any potential tariff revenues to fund their next big tax break for billionaires.”
Kobie Christian, a spokesperson for the national campaign Unrig Our Economy, also criticized the policy, saying, “this is a detached policy crafted by and for billionaires.”
“No one benefits from these GOP-supported tariffs—except the ultra-rich who will receive another tax cut, funded by working-class families,” Christian elaborated. “Small business owners will have to increase their prices to stay afloat, and Americans will have to pay even more for everyday items. These tariffs could even tip the economy into a recession. What American workers need are lower costs, not more tariffs and billionaire giveaways.”
Lori Wallach, director of Rethink Trade at the American Economic Liberties Project, asserted that “companies that have profited from our flawed trade system ought to cover the transition to more equitable trade, not American workers or consumers. Immediate action is required from President Trump to prevent corporations from exploiting these tariffs to overcharge Americans already burdened by decades of poor trade policies and corporate greed.”
Wallach also noted the potential benefits of tariffs, explaining that “while Trump’s announcement is overly broad, tariffs against countries practicing mercantilism like China, Germany, Korea, Taiwan, and Japan can help counteract systemic trade abuses and rebuild America’s capacity to produce essential goods for the health and safety of American families and for national resilience and security.”
“However, for tariffs to boost American production and create good jobs, the aim should be to balance trade, not just equalize tariff rates. Tariffs need to be part of a broader industrial policy, including tax credits to foster demand for U.S.-made products, incentives for investing in new production capacities, restrictions on stock buybacks, and easier union formation to ensure gains are passed on as wages, not just profits,” she emphasized.
Liz Shuler, president of the AFL-CIO, the largest federation of unions in the nation, also supported the strategic use of tariffs to bolster industries and protect jobs domestically. However, she stressed that these must be accompanied by investments in our manufacturing sector and a robust commitment to promoting workers’ rights to organize and collectively bargain.
“Regrettably, the Trump administration’s attacks on trade union workers’ rights domestically, dismantling of the government agency tasked with discouraging job outsourcing, and undermining critical investments in U.S. manufacturing are steps backward,” she declared. “We will continue advocating for a trade policy that serves the interests of workers without causing undue economic hardship for American families.”
Some Democratic members of Congress echoed these concerns. Congresswoman Debbie Dingell from Michigan noted, “Tariffs, when used strategically, are essential tools for restoring jobs and supporting American workers and industries. However, I am concerned about the hasty and expansive implementation of these wide-reaching tariffs.”
U.S. Rep. Jimmy Gomez (D-Calif.) expressed on social media, “Trump’s ill-advised tariffs will raise prices for actual working people, such as the father trying to save money by repairing his own car. Those parts from AutoZone that are made abroad will now cost more!”
As the White House circulated a detailed list of targeted countries, Gomez and Rep. Sean Casten (D-Ill.) noted the absence of Russia—which has been engaged in a protracted conflict with Ukraine—from the list.
Meanwhile, critics like Aaron Reichlin-Melnick from the American Immigration Council pointed out that the list included the Australian territory of Heard Island and McDonald Islands, despite it being “completely uninhabited.”
“Population zero. Are we going to impose tariffs on the seagulls?” joked Reichlin-Melnick. “It seems like someone at the White House just scrolled through Wikipedia’s list of countries to compile this with no further research.”
Organizer Max Berger humorously commented on Bluesky, “I love how nobody knows whether the President of the United States is about to crash the global economy because he’s clueless—or if he’s just messing around.”
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