Barack Obama-era Treasury Secretary Lawrence Summers criticizes Donald Trump’s proposed tariffs, questioning how they could help fight inflation.
What Happened: On Monday, Summers, the former Treasury Secretary, took to X to express his concerns about the proposed tariffs by Trump. Summers questioned the logic behind imposing a tariff of 10% to 100% on all imported goods as a strategy to combat inflation.
He highlighted the impact on families, especially with the holiday season approaching, as most toys imported from China could potentially double in price due to the 100% tariff.
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Summers shared an interview with Fox News in the post where he asked the anchor, “How can it be that putting a tax on all the goods we import of 10% and in some cases 100%…how can that help fight inflation?”
Summers asked her how is it going to be possible for parents in the holiday season when most toys are imported from China to afford them when they are going to double in price.
She said that in a lot of cases Trump was looking to “leverage” the tariff threat to get concessions out of other countries.
One X user responded to Summers and said he didn’t see how Trump could become president before Christmas. If Trump were to win the upcoming presidential election on November 5, he would be inaugurated on January 20, 2025.
Summers has been vocal about his concerns regarding Trump’s economic policies in the past. He has previously warned that Trump’s fiscal policy could inflict more damage than the one that precipitated the Great Depression, calling it an “irresponsible set of proposals.”
Why It Matters: Trump’s proposed tariffs have been a contentious issue, with a significant backlash from voters. According to an NBC News poll, 44% of respondents said they would be less likely to support a candidate advocating universal tariffs. This comes at a time when inflation and fragile supply chains are already causing economic strain.
Summers has previously expressed concerns that political interference with the Federal Reserve might lead to higher wages and prices. He stated, "Long term inflation expectations are anchored by the judgment that a politically independent central bank will impose restrictive policy if inflation becomes excessive."
Summers’ concerns echo those of billionaire investor Mark Cuban, who warned that the proposed tariffs could significantly increase the cost of Christmas holiday shopping for American families.
Image via Flickr
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
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