New Delhi
Former IMF Chief Economist Gita Gopinath has criticised US President Donald Trump’s tariff policies, saying they acted like a tax on American consumers, increased inflation, and brought no real benefit to the US economy.
Gopinath referred to Trump’s so-called “Liberation Day” tariffs, announced on April 2, under which he invoked the International Emergency Economic Powers Act (IEEPA) to impose widespread tariffs on foreign imports, claiming they would fix unfair trade barriers and support US producers.
However, after six months, Gopinath said the results have been “negative.” Writing on social media platform X, she said the tariffs had only raised government revenue—paid mostly by US firms and passed on to consumers—functioning like a tax.
She explained that while the tariffs increased inflation slightly overall, prices for household appliances, furniture, and coffee rose more sharply. Meanwhile, there was no improvement in either the US trade balance or domestic manufacturing output.
Gopinath summarised: “The scorecard is negative — higher costs for consumers, no trade gains, and no manufacturing boost.”
The former IMF economist, now a Harvard University professor, also highlighted that the tariffs’ effects have spread globally. India, for instance, faced a 25 percent tariff in July, followed by another 25 percent penalty on Russian crude oil imports in August.
Trump further escalated trade tensions by announcing a 100 percent tariff on branded and patented pharmaceuticals starting October 1, unless companies relocate production to the US.
Experts warn that such protectionist steps could worsen global inflation and disrupt international trade, with limited benefits to the American economy.