'Overall, scorecard is negative': Ex-IMF chief economist criticizes Trump's tariffs
What's the story
Harvard University professor and former International Monetary Fund Chief Economist Gita Gopinath has criticized United States President Donald Trump's tariff policy. After six months of implementation, she said she found little evidence of the tariffs delivering their promised benefits. The tariffs were introduced as "Liberation Day" tariffs to address what Trump called decades of unfair trade barriers harming American producers.
Economic impact
Tariffs raise government revenue at cost to firms, consumers
Gopinath noted that the tariffs have raised government revenue "quite substantially," but at a cost to American firms and consumers. She said they acted as a tax on these groups, with some of the burden passed onto US consumers. The policy has also increased inflation, especially for household goods like appliances, furniture, and coffee. However, it hasn't improved the trade balance or boosted US manufacturing, two key objectives of the administration.
Twitter Post
Gopinath's post on X
It is 6 months since "Liberation day" tariffs. What have US tariffs accomplished?
— Gita Gopinath (@GitaGopinath) October 6, 2025
1. Raise revenue for government? Yes. Quite substantially. Borne almost entirely by US firms and passed on some to US consumers. So it has worked like a tax on US firms/consumers.
2. Raise… pic.twitter.com/KZG3UgKB3S
Global outlook
World Bank downgrades South Asia's growth forecast for 2026
The World Bank has also weighed in on the impact of Trump's tariffs, downgrading South Asia's growth forecast for 2026. The bank said in its regional outlook that higher US tariffs on Indian exports would affect growth. It revised its forecast for South Asia's growth down to 5.8% in 2026 from a projected 6.6% in 2025 due to these factors.
Trade impact
India is 1 of the most affected countries
India is one of the countries most affected by Trump's tariff regime, with a 50% tariff on most exports. The duties affect nearly $50 billion worth of Indian goods, including textiles, gems and jewelry, and shrimp exports. Despite this, India's near-term growth outlook remains resilient, according to the World Bank, which raised its FY26 growth projection for India to 6.5%.
Policy expansion
Trump expands tariff regime to include trucks
In the months following the initial tariffs, Trump expanded the regime to include several key sectors. The latest move announced on Monday imposes a 25% tariff on all medium- and heavy-duty trucks imported into the US starting November 1. This is part of Trump's ongoing push to boost domestic manufacturing through protectionist measures.