President Trump has reintroduced tariffs on foreign goods, sparking concerns that they could harm U.S. economic growth. New evidence from the Federal Reserve suggests policymakers were actively working to keep growth steady in 2019 despite these challenges. Critics argue that such tariffs would lead to higher inflation and interest rates, but history shows the real threat may lie in their impact on the economy rather than their size alone.
The White House gained Trump’s support not because the economy was thriving, but because many voters felt it wasn’t serving them well—despite positive aggregate data. His recent trade wars have shown that while growth is important, policies designed to protect industries can sometimes be more harmful in the long run. The ongoing debate over tariffs highlights the delicate balance between protecting jobs and maintaining economic health.
Source: https://www.bloomberg.com/news/features/2025-01-28/could-trump-s-tariffs-slow-us-growth-it-happened-last-time