Economy
Inflation Up, Benefits Absent: Ex-IMF Chief Economist Gita Gopinath Says Trump Tariffs Have Worked Like A Tax On US Firms And Consumers
Former IMF Chief Economist Gita Gopinath
US President Donald Trump introduced steep tariffs — up to 50 per cent on nations such as India and Brazil, and an unprecedented 100 per cent on branded and patented pharmaceuticals drugs — to revive domestic manufacturing and narrow the trade gap.
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But Harvard professor and former IMF chief economist Gita Gopinath has now assessed the impact of Trump's tariffs — delivering a blunt “negative" verdict.
Six months after the Trump tariffs' implementation, she said the policy yielded minimal to no economic benefit for the US.
In a detailed post on X, Gopinath reviewed the so-called “Liberation Day” (2 April) tariffs through four metrics — revenue, inflation, trade balance, and manufacturing.
While they increased government income, the burden fell mostly on US companies and consumers.
She noted a slight rise in inflation, especially for items like appliances, furniture, and coffee, but no improvement in either the trade balance or manufacturing output.
"It is six months since the 'Liberation Day' tariffs. What have US tariffs accomplished?
Raise inflation? Yes, by small amounts overall. More substantially for household appliances, furniture, coffee.
Improve trade balance? No sign yet of that.
Improve US manufacturing? No sign yet of that", she said in the X post.
Her final line summed it up: “Overall, the scorecard is negative.”
Gopinath’s findings reinforce mounting criticism that Trump’s protectionist push has failed to achieve its economic goals, functioning more as a hidden tax on American households and industries than a driver of growth.
