As President Donald Trump announces a new round of tariffs, elected Democrats and liberal economists are once again predicting economic catastrophe. But the record so far in Trump’s second term suggests that the President’s trade policy is helping, not hurting the economy.
When President Trump announced his “Liberation Day” tariffs on April 2, the economic “expert” class was quick to assure everyone that the economy would soon enter an uncontrolled tailspin, that store shelves would soon be bare, and that inflation would soar once again. Panicked investors did send the market into a temporary downturn, exacerbating fears of a recession.
Steven Greenhouse predicted on April 5 in The Guardian that Trump’s tariffs are “going to do serious damage to the U.S. and global economies… stock market investors are convinced that’s the case, with Wall Street and world stock markets losing trillions of dollars in value in recent days as a result of Trump’s obsession.”
Reliably liberal economist Paul Krugman, meanwhile, called Trump a “con man” in an April 4 post on his Substack newsletter. The tariffs will “inflict serious economic harm,” Krugman predicted. He also said that the United States is “heading for multiple policy trade wrecks, inflicting damage like you’ve never seen before.” (It should perhaps be noted here that Krugman infamously predicted in 1998 that the internet would never really take off and would have an impact similar to the fax machine.)
Joining in the anti-Trump chorus, MSNBC commentator Stephanie Ruhle said, “you’re seeing day in, day out, more business leaders – whether it’s Warren Buffett, or Jamie Dimon, or Ken Griffin, on big global stages – saying this is going to crush us economically.”
Trump’s initial wave of tariffs started off with a baseline of 10 percent on all imports with some countries being taxed at higher rates in an effort to narrow the trade deficit. The President then largely froze those higher rates and kept the 10 percent baseline rate while trade deals were negotiated. Bringing trading partners to the table was the main point of the tariffs – something the experts missed.
Unfortunately for the “experts” and fortunately for the American people, the doom-and-gloom predictions have not panned out. While the stock market did initially dip after the tariffs, it is now up on the year, while the S&P 500 has reached record highs in recent days.
Meanwhile, it appears Trump has vanquished the Biden inflation monster – fulfilling the central economic promise of his 2024 campaign. A new report out this week from the Council of Economic Advisors has found that the prices of imported goods have fallen this year and have declined faster than overall goods since February – dispelling the notion that Trump’s tariffs would cause prices of imported goods to soar. In April, inflation hit a four-year low. It was 2.4 percent in May, just above the Fed’s target of two percent. June inflation data is expected next week.
At the same time, the latest jobs report, showing 147,000 jobs created, beat expectations by a whopping 37,000 positions as the economy continues to grow. Six months into Trump’s term, tariffs have been an effective negotiating tool in opening up foreign markets to American companies, creating jobs and wealth in the United States.
Even NBC News had to admit the economy is doing well – while nonetheless continuing to predict dark storms ahead.
“On one hand, the inflation rate has so far proven stable, while average earnings continue to grow at a healthy clip,” a July 3 article stated. “Stocks have returned to all-time highs, and in testimony last week, Federal Reserve Chair Jerome Powell described overall economic conditions as ‘solid.’”
Powell said “labor force participation,” “wages,” and “job creation” are all at “healthy levels now.”
CNBC also reported in late June that tariff revenues were at a record high – proving Americans are still consuming foreign products. “We are collecting a lot of revenue,” CNBC reported.
The benefits of the tariff strategy will continue to pay off as the administration makes valuable deals with other countries – avoiding the “multiple policy trade wrecks” Krugman predicted.
CNN has also begrudgingly acknowledged Trump’s economic successes – while of course maintaining their position that the President’s tariffs will surely lead to economic chaos eventually. “Inflation is tame. Markets are at record highs. But economists warn Trump is still playing with fire on tariffs,” the outlet reported on July 8.
But those “warnings” haven’t amounted to much, particularly as the White House continues to unveil new trade deals. Just before the July 4 holiday, Trump announced an agreement with Vietnam that will, in the words of the President, “give the United States of America TOTAL ACCESS to their Markets for Trade.”
Further victories could be on the horizon as well, as a deal with India and its 1.4 billion consumers is in the works, according to Reuters. “India is open to lowering tariffs on walnuts, cranberries and other fruits, along with medical devices, autos and energy products,” Reuters reported.
While the “experts” continue to peddle empty predictions of economic collapse, Trump is continuing to stack economic victories. The experts were wrong, the media was wrong, and, once again, Trump was right.
Matt Lamb is an AMAC Newsline Contributor and an associate editor for The College Fix. He previously worked for Students for Life of America, Students for Life Action, and Turning Point USA. He previously interned for Open the Books. His writing has also appeared in the Washington Examiner, The Federalist, LifeSiteNews, Human Life Review, Headline USA, and other outlets. The opinions expressed are his own. Follow him @mattlamb22 on X.
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