The Great Trade Reversal: Trump’s Tariffs Are Gaining Fans in Academic Economists
President Trump has long believed that America’s economic leverage has been systematically squandered by its own ruling class. For this he has been accused—by economists, editorial boards, and the entirety of Davos—of misunderstanding trade. But the latest word from the economics profession is… not so fast.
A new CESifo working paper, blandly titled “Making America Great Again? The Economic Impacts of Liberation Day Tariffs,” lands with all the drama of a footnote—until you read what it actually says. If the U.S. can impose tariffs without sparking retaliation, it can come out ahead. Higher wages. Smaller trade deficit. Slightly lower taxes. A net gain in welfare. That’s not a MAGA slogan. That’s a math-based result.
Of course he has this figured out. Add up the DOGE cuts and the tariffs and I’m wondering how long it will take to pay down the deficit and force balanced budgets. I’ve read estimates of up to 500BB or more each year (Forbes) If true, it is conceivable that could become a reality. At this rate, POTUS is just rolling along faster each day, stacking up wins in legislation, the courts, immigration and the list goes on. Pretty much everything that was said to be impossible becomes reality and I’m loving it!