Bulwark Takes Trump’s Tariff Plan Is a Math Disaster
Apr 7, 2025
Stan Veuger, a senior fellow and economist at the American Enterprise Institute, unpacks the disastrous math behind Trump's tariff plan. He reveals how this flawed formula is crashing markets and elevating inflation. The discussion critiques the mistaken justifications for tariffs and the negative impacts on American manufacturing. Veuger also dives into the complexities of domestic production and the challenges of reviving STEM jobs against a backdrop of international supply chains. Ultimately, he highlights the reckless miscalculations driving these economic policies.
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Tariffs' Negative Economic Impact
- Trump's tariff plan is economically damaging, causing stagflation (inflation and slowed economic growth).
- It increases prices while also acting as a tax increase, disrupting supply chains.
Lack of Justification for Tariffs
- Trump's tariff plan lacks any sensible economic justification, driven primarily by his obsession with tariffs and Japan.
- Rationalizations like global macro imbalances or protecting U.S. manufacturing are flawed and expensive.
Impact on Manufacturing Jobs
- The idea that tariffs will bring back many manufacturing jobs is misguided.
- These jobs often require advanced STEM training and rely on complex international supply chains, not easily replicated.