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Here’s how Trump’s tariffs could backfire — just as Reagan warned us

MarketWatch
Summary
Nutrition label

78% Informative

President Trump intends to undo the effects of globalization, says Julian Zelizer .

Zelizer: The first order is to reduce the U.S. federal debt, or at least its trajectory.

He says tariffs can raise revenue, motivate manufacturers to return production back to the United States and indirectly weaken the dollar.

U.S. withdrawal from global geopolitical leadership weakens dominance of the dollar and its “exorbitant privileged” position as a reserve currency.

Investors must consider the costs and benefits of Trump ’s initiatives, which consist of certain short-term pain for uncertain long-term gain.

UCLA Anderson School of Management says it is on recession watch should the full effects of Trump ’s policies of tariffs, DOGE cuts and mass deportations be enacted.

It added: implementing [these] supply shocks in what mirrors the sequence of supply shocks that led to The Great Inflation of the 1970s’.

VR Score

79

Informative language

75

Neutral language

72

Article tone

formal

Language

English

Language complexity

60

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

short-lived

External references

12

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