Economist Calls Trump’s Tariff Approach ‘Chaotic’ for U.S. Trade

It is the critical analysis needed after the Trump administration imposes sweeping tariffs on almost every trading partner of the United States. Dr. Gbenga Ajilore, Chief Economist at the Center for Budget and Policy Priorities, calls Trump’s tariff approach chaotic and unclear. He says the goal of tariffs range from raising revenue to curbing fentanyl trafficking, but this new agenda carries a conflicting, confusing objective. Ajilore joins Maggie Daun, host of The Maggie Daun Show, to discuss the tariffs and the impact on U.S. trade. 

Listen to the entire segment starting at the half-way mark here:

 “The tariffs are meant to generate billions in revenue,” Ajilore says. “The intention is to bring manufacturing jobs back to the U.S. while also fighting illegal drug trade.” 

However, Ajilore points out there are fundamental contradictions in these goals. He explains that raising tariffs to curb fentanyl would undermine the revenue-generating potential of these taxes, leaving the key objectives at odds.

Ajilore also stresses the uncertainty many businesses are facing under this unpredictable policy. 

“There will be damage to industries like agriculture,” Ajilore explains. “And particularly in states like Wisconsin, where retaliatory tariffs could decimate dairy and soybean exports. The long-term impacts of these policy changes are concerning, especially as global trade partners seek stability elsewhere. This could potentially lead to a permanent shift away from U.S. markets.”

---

Tariffs: A Quick Explanation

President Donald Trump unveiled his sweeping trade agenda on April 2. It includes far-reaching tariffs on U.S. trade partners, including a 10 percent baseline tariff on imports from all countries except for Mexico and Canada. The changes are set to take effect April 5.

Several dozen nations are also facing even higher individualized import taxes, including a 34 percent tariff on China, a 26 percent tariff on India and a 20 percent tariff on the European Union. These tariffs will go into effect April 9. 

Read the White House fact sheet to see how each trade partner’s reciprocal import taxes are being calculated based on what Trump considers an unfair trade practice for American products. 

---

He also tells Daun there will be negative effects on low-income Americans with the tariffs essentially serving as a sales tax on goods, impacting those with limited purchasing power. 

“There is a need for clarity and consistency in this new trade policy,” Ajilore says. “The current approach is doing more harm than good and may permanently erode trust in the U.S. as a reliable trade partner.”

Daun shares that Republican Senator Rand Paul is sharing his concerns about the growing uncertainty. He believes though tariffs are often seen as a tool to protect domestic industries, these will raise prices and harm consumers. He is arguing a trade deficit in a wealthy country like the U.S. is not a negative but rather an indicator of a strong economy that benefits from cheaper goods imported from lower-wage countries.

The tariffs that Trump detailed Wednesday mark the most significant U.S. protectionist trade action since the 1930s, when Congress imposed tariffs on more than 20,000 goods and dug the U.S. economy deeper into the Great Depression. https://t.co/G9863LOTQU

— Rand Paul (@RandPaul) April 3, 2025

Ajilore believes the real issue remains the unpredictable nature of Trump’s tariff strategy, with both businesses and consumers left to navigate a landscape of instability and confusion. 

“This may have lasting repercussions, as countries and businesses may increasingly look to diversify away from U.S. markets,” Ajilore explains. “It’s a potentially irreversible shift in global trade dynamics.”