Economist Criticizes U.S. Tariff Policy as Hidden Tax

According to BlockBeats, conservative economist Stephen Moore, who served as a senior economic advisor during U.S. President Donald Trump's first term, has recently criticized the administration's extensive tariff policies. Moore described these tariffs as a 'hidden tax' on consumers, potentially hindering economic growth and weakening employment. Moore stated, 'Tariffs are taxes, and taxes are never a good thing,' marking a significant shift from his previous support for trade protectionism. He highlighted that while tariffs are viewed by the government as tools to revitalize manufacturing and fund tax reduction policies, their costs are often passed on to consumers, leading to higher prices and increased inflation. Research from multiple institutions indicates that the new round of tariffs set to be implemented in 2025 could add approximately $1.2 trillion in tax burdens over the next decade, causing the U.S. GDP to decline by about 0.4% and reducing employment by 344,000 jobs. Moore also acknowledged that the regressive nature of tariffs would disproportionately impact middle- and low-income families. Moore urged that if tariffs continue, they should be applied in a targeted and temporary manner, and that tax reductions should be enacted swiftly to mitigate negative effects. His change in stance is seen as a sign of deepening divisions within Trump's camp between free-market principles and trade protectionism, adding uncertainty to the direction of U.S. economic policy in 2026.