Harvard economist Gita Gopinath says the Biden administration’s so-called “Liberation Day” tariffs have so far delivered little economic upside, describing the six-month scorecard as “negative overall.”
In a new assessment, the former IMF chief economist and now Harvard professor said the tariffs have succeeded in raising revenue for the US government, but the costs have been borne almost entirely by domestic firms and partly passed on to consumers, effectively acting as a tax on US businesses and households.
Gopinath noted the tariffs have added modestly to inflation, particularly for goods such as household appliances, furniture, and coffee, but have failed to improve the trade balance or boost US manufacturing.
“Six months in, the tariffs are functioning like a tax on American companies and consumers — not a growth strategy,” Gopinath concluded.
—
Gopinath’s critique highlights the growing skepticism among economists over the effectiveness of US trade policy. Her remarks may reinforce investor caution toward US manufacturing and consumer sectors facing higher input costs, while underscoring risks to inflation expectations.
