ABC News Daily Are Trump’s tariffs wrecking the US economy?
Nov 16, 2025
Penny Goldberg, a Yale economics professor and former Chief Economist at the World Bank, discusses the complexities of Trump's tariffs. She highlights how despite initial fears, the US economy has shown resilience, with tariffs generating significant revenue. However, she warns about long-term uncertainties, inflation risks, and the potential negative impacts on investment. Goldberg also critiques the idea that the economy is 'the strongest ever,' emphasizing that trade policies could inflict harm. Tune in for her insightful analysis of an evolving economic landscape.
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Tariff Announcements Were Largely Softened
- The April tariff announcements were unusually broad and tied to trade balances rather than standard criteria.
- Pinelopi Koujianou Goldberg says many announced tariffs were later reduced or framed as negotiation starters, muting their initial impact.
Importers Are Eating Tariff Costs For Now
- Early evidence shows importers absorbed tariff costs rather than passing them to consumers.
- Goldberg warns firms can delay price increases short-term but will raise prices if tariffs persist.
Tariffs Raise Revenue But Not Deficits
- Tariff revenue has roughly doubled and could reach about $190 billion in 2025.
- Goldberg notes this is still a tiny share of federal revenue and won't meaningfully reduce the deficit.