‘Overall, Scorecard Is Negative’: Gita Gopinath Slams Trump Tariffs

Harvard University professor and former IMF Chief Economist Gita Gopinath has given a “negative score” to US President Donald Trump’s tariff policy, saying that six months after their introduction, there is little evidence they have delivered any of the promised benefits. Gopinath said the tariffs, touted by Trump as a key step toward restoring American manufacturing strength, have largely acted as a tax on US firms and consumers.

“It is 6 months since ‘Liberation Day’ tariffs. What have US tariffs accomplished? 1. Raise revenue for government? Yes. Quite substantially. Borne almost entirely by US firms and passed on some to US consumers. So it has worked like a tax on US firms/consumers. 2. Raise inflation? Yes, by small amounts overall. More substantially for household appliances, furniture, coffee. 3. Improve trade balance? No sign yet of that. 4. Improve US manufacturing? No sign yet of that. Overall, the score card is negative,” she said.

Trump imposed sweeping tariffs on multiple trading partners on April 2, calling them “Liberation Day” tariffs, aimed at correcting what he described as decades of unfair trade barriers that hurt American producers. The tariffs began with a 10% baseline rate, with additional duties later applied to several countries.

India was hit with a 25% tariff, followed by an additional 25% penalty on its purchases of Russian crude oil. The US also engaged in an escalating tariff war with China, which was temporarily paused after both sides agreed to resume trade talks.

In the following months, Trump expanded the tariff regime to include several key sectors. In his latest move, announced on Monday, the administration said all medium- and heavy-duty trucks imported into the United States would face a 25% tariff beginning November 1, which is a part of the White House’s continuing push to boost domestic manufacturing through protectionist measures.