Economist Art Laffer warns tariffs are terrifying for U.S. economy
- Art Laffer expressed concerns about President Trump's tariffs and the unstable state of the U.S. economy.
- He believes that protectionism typically leads to economic downturns and suggested that reducing tariffs could stimulate growth.
- Despite his fears, he hopes Trump can negotiate favorable trade deals to mitigate the negative effects of tariffs.
In a recent interview with Axios, renowned economist Art Laffer shared his concerns regarding President Donald Trump's tariffs, labeling the current economic situation as the most frightening and unstable he has ever experienced. Laffer, a supporter of Trump and the architect of the 'Laffer curve,' noted that protectionist policies typically lead to economic downturns, asserting that more protectionism equates to greater economic challenges. He articulated his belief that reducing tariffs and embracing free trade could catalyze economic growth, a sentiment echoed in his discussions about the potential pause on tariffs announced by the Trump administration. This pause is tied to Trump's efforts to negotiate better trade deals, particularly concerning China. Laffer's commentary reflects a complex relationship he has with Trump's economic policies, as he also recognizes Trump's skills as a negotiator and hopes that effective deals could alleviate the pressure created by tariffs. He cautioned, however, that disruptions to supply chains are difficult to reverse, emphasizing that the current trajectory could lead to an economic bust. Laffer's acknowledgment of Trump's negotiation prowess does not overshadow his alarm regarding the dangers of tariffs, which he described as a detrimental government response and outlined the critical nature of the forthcoming months in determining whether his fears or hopes will be validated.