Like a lot of economists, Mark Zandi, with Moody's Analytics, thinks President Trump's across-the-board tariffs are a bad idea. Saying, "Tariffs, broad-based tariffs, are a real problem for the economy."But Zandi says – it's not just the tariffs themselves that are the problem, it's the uncertainty created by Trump's rollout. Trump threatened 25% Tariffs on Canada and Mexico would start in February. They were paused at the 11th hour, only to eventually go into effect this week.On Thursday Trump announced the new tariffs would be paused for most products, but potentially only until April 2.Meanwhile tariffs on China snapped into place in February, and then doubled, to 20%.What happens next is anyone's guess. Businesses have been optimistic about the economy under Trump. His chaotic tariff rollout threatens that.For sponsor-free episodes of Consider This, sign up for Consider This+ via Apple Podcasts or at plus.npr.org. Email us at [email protected]. Learn more about sponsor message choices: podcastchoices.com/adchoicesNPR Privacy Policy
Full Episode
Like a lot of economists, Mark Zandi with Moody's Analytics thinks President Trump's across-the-board tariffs are a bad idea.
Broad-based tariffs are a real problem for the economy.
He told NPR that if all of Trump's tariffs stay in effect...
And those are, you know, some big ifs. But if that happens, the typical American household will have to shell out $1,200 to $1,300 more a year to buy the same goods that they're buying now.
Treasury Secretary Scott Bassett said on CBS News' Face the Nation that those fears were alarmist.
We have the experience of President Trump's first term where the tariffs did not affect prices. And it's a holistic approach that there will be tariffs, there will be cuts in regulation, there will be cheaper energy.
But Zandi says it's not just the tariffs themselves that are the problem, it's the uncertainty created by Trump's rollout. So just to recap, Trump threatened 25% tariffs on Canada and Mexico would start in February. They were paused at the 11th hour only to eventually go into effect this week.
And then on Thursday, Trump announced the new tariffs would be paused for most products, but potentially only until April 2nd. Meanwhile, tariffs on China snapped into place in February and then doubled to 20%. What happens next is anyone's guess. And Zandi says that is bad for business.
You need some confidence in the rules of the road, and tariffs are a key rule. And if you don't have that, you're not—I don't know that you cut. I don't know that it means you fire people, but I think it does mean you sit on your hands.
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