Trump Tariffs Have Done 'Significant Damage' to U.S. Economy, Says Moody's Chief Economist
One year after Liberation Day tariffs, Moody's chief economist Mark Zandi warns the duties have caused significant economic damage, including stalled job growth outside healthcare and accelerated inflation that has hurt American families. The analysis comes as economists debate the long-term impacts of the sweeping tariff regime.
Tariffs Inflict Economic Pain One Year In
Mark Zandi, chief economist at Moody's Analytics, said that the data are "definitive": "The tariffs have done significant damage to the economy." Since that day, job growth has come to a standstill, with only the non-traded healthcare industry adding meaningfully to payrolls.
Inflation and Consumer Impact
Since that day, inflation has accelerated, with the consumer expenditure deflator increasing at a 3% year-over-year pace, up from 2.5% before the tariffs and well above th the Federal Reserve's 2% target. A significant portion of U.S. families are effectively living in a recession.
Constitutional and Revenue Concerns
In February, the Supreme Court ruled that Liberation Day tariffs were unconstitutional on account of their legal basis: the International Emergency Economic Powers Act (IEEPA). The White House quickly changed gear, leaning on legislation such as the 1974 Trade Act to keep the duties in place.