Why haven't tariffs significantly damaged the economy?

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Recorded14 May 2026

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Show notes

The tariff increases during the second Trump administration have been historic in their magnitude and scope, dwarfing even those from Trump's first term. Many feared that these tariffs would have dramatic impacts on the economy, but for the most part, the tariff impacts have been muted in the U.S. In a new BPEA study, Pablo Fajgelbaum and Amit Khandelwal document the effects of Trump's tariffs, what goals they have (or have not) accomplished, and where the costs have fallen. On this episode of the Brookings Podcast on Economic Activity, the authors speak with Kari Heerman, Brookings' director of trade and economic statecraft, about their findings and what to expect next. Show notes and transcript The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to [email protected].

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