Trump Tariffs A 'Strategic Gift' To Xi Jinping's China, Says Obama-Era Treasury Secretary: 'Jobs In Industrial Heartland Will Be Lost'

On Sunday, renowned economist and Obama-era Treasury Secretary Lawrence Summers criticized President Trump’s recent tariff impositions, describing them as a “bully strategy” that could have far-reaching negative impacts.

What Happened: In a series of posts on X, Summers voiced his disapproval of Trump’s tariffs, stating they are a “strategic gift to Xi Jinping.” He warned that the tariffs could lead to price increases for oil, food, and cars, possibly necessitating a response from the Federal Reserve in the form of raised interest rates.

.@realDonaldTrump's tariffs are a bully strategy. Bullying doesn't win over time on the playground or in the international arena. This self-inflicted supply shock is a strategic gift to Xi Jinping. 1/4

— Lawrence H. Summers (@LHSummers) February 2, 2025

Summers further predicted job losses in the industrial heartland as American producers struggle with higher input costs. He also expressed concerns over the potential loss of trust from Canada and Mexico, and the subsequent economic and security risks.

Jobs in the industrial heartland will be lost as American producers can't compete due to higher input costs. Canada and Mexico will lose trust in us and retaliate as their economies suffer. Immigration and drug risks will increase. 3/4

— Lawrence H. Summers (@LHSummers) February 2, 2025

Summers summarised the thread by saying, “Xi Jinping is given an excuse for his economic failures and a more open door to all our allies as we prove our unreliability by bullying.”

See Also: Mark Cuban Said If He Had Enough Money To Buy Fox News, He’d ‘Buy It In A Heartbeat’ – Estimates It Could Turn Around For $15B-$20B

Why It Matters: Trump’s tariffs, which include a 25% duty on all imports from Mexico and most goods from Canada, excluding energy-related items, and a 10% tariff on Chinese goods imported into the United States, have been met with warnings from economists about potential negative impacts on American businesses and consumers.

Canada has already announced plans to impose tariffs on American goods in retaliation. This move comes in response to Trump’s executive order imposing a 25% tariff on most U.S. imports from Canada.

Former White House Communications Director Anthony Scaramucci also expressed his concerns over the tariffs, urging elected officials to take a stand against what he termed as the “crazy nonsense” of Trump’s new tariffs on Canada, China, and Mexico.

Photo via Shutterstock

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal