Goldberg in Project Syndicate: "Why Markets May Soon Call America’s Tariff Bluff"
EGC affiliate Pinelopi Koujianou Goldberg penned a commentary in Project Syndicate on how financial markets have mitigated the impact of recent tariff threats and what may happen next.
Project Syndicate
July 18, 2025
Three months after President Donald Trump announced plans to impose sweeping new tariffs on most countries, the US economy appears surprisingly resilient. The stock market has rebounded from its initial slump, inflation remains under control, and fears of a recession have receded – or at least they had before Trump announced a new 30% tariff on imports from Mexico and the European Union, two of America’s biggest trading partners.
In the months since Trump’s initial announcement, several countries have entered negotiations with the United States, offering concessions they had long resisted. Many observers view this as evidence that Trump’s aggressive trade tactics are working and that economists may have overestimated the potential costs.
Yet this interpretation overlooks a critical detail: many of the tariffs that Trump announced over the past few months have not been fully implemented.