Economists Wrong About Trump Tariff Impact on Economy
What Happened President Trump’s “Liberation Day” tariffs imposed last year represented a dramatic shift in U.S. trade policy, with average tariff rates surging from approximately 3% to well over 20%. The Supreme Court recently declared these tariffs unconstitutional, prompting Trump to work on reimposing them. The economic impact, however, diverged significantly from expert predictions. Ben Harris, vice president and director of economic studies at the Brookings Institution and former assistant Treasury secretary for economic policy under President Biden, acknowledged that economists underestimated the resilience of the economic system.