FLASHBACK: Trump’s ‘Liberation Day’ tariffs hit one-year mark as economists split on fallout
A year ago today, President Donald Trump announced a sweeping new round of global tariffs, escalating trade tensions with key allies and adversaries alike, raising fresh concerns about the outlook...
By Fox News · Fox News
A year ago today, President Donald Trump announced a sweeping new round of global tariffs, escalating trade tensions with key allies and adversaries alike, raising fresh concerns about the outlook for the U.S. and global economy. The "Liberation Day" tariffs were introduced as a broad set of import taxes that Trump said would correct long-standing trade imbalances and reduce U.S. reliance on foreign goods. In the months that followed, markets experienced bouts of volatility as businesses and investors adjusted to the shifting trade landscape. Policymakers and economists, meanwhile, debated the longer-term impact on growth, inflation and global trade flows. Many economists warned of potential consequences, including higher prices, slower growth and rising uncertainty for businesses and investors. TRUMP SAYS US WOULD BE 'DESTROYED' WITHOUT TARIFF REVENUE But not everyone agreed. "Trump proved 12 Nobel Prize economists wrong," economist Stephen Moore told Fox News Digital. "Inflation didn't rise. Why? Because the tax cuts, deregulation and ‘drill, baby, drill’ policies lowered prices and offset the tariffs," added Moore, a former Trump adviser and co-founder of the free-market advocacy group Unleash Prosperity. But Moore’s view was not widely shared. Here’s a look back at what other economists said at the time. Former Treasury Secretary Larry Summers called the ‘Liberation Day’ tariffs " masochistic ," saying they were the worst levy the U.S. had imposed in decades. "Never before has an hour of Presidential rhetoric cost so many people so much," Summers wrote on X. "The best estimate of the loss from tariff policy is now closer to $30 trillion or $300,000 per family of four." Paul Krugman, a Nobel Prize–winning economist, said Trump had "gone full-on crazy" in the hours after the "Liberation Day" tariffs were announced. "If you had any hopes that Trump would step back from the brink, this announcement, between the very high tariff rates and the complete falsehoods abo…