'Negative scorecard': Gita Gopinath slams Trump’s tariffs as ‘tax on US firms and consumers

Gopinath said the tariffs have indeed raised government revenue “quite substantially,” but at the cost of American firms and consumers.

US President Donald Trump’s steep tariff hikes on countries such as India and Brazil have drawn sharp criticism from economists and international institutions, with Harvard professor and former IMF Chief Economist Gita Gopinath saying the measures have largely failed to deliver results.

In a post on X, Gopinath described the tariffs, which have been in effect for six months now, as counterproductive, asserting that they have offered “little to no benefit” to the US economy.

“It is 6 months since ‘Liberation Day’ tariffs. What have US tariffs accomplished?” she wrote, before listing several key points on the policy’s impact.

It is 6 months since "Liberation day" tariffs. What have US tariffs accomplished?
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

— Gita Gopinath (@GitaGopinath) October 6, 2025

Gopinath said the tariffs have indeed raised government revenue “quite substantially,” but at the cost of American firms and consumers. “Borne almost entirely by US firms and passed on some to US consumers. So it has worked like a tax on US firms/consumers,” she wrote.

She added that the policy has increased inflation, particularly for household goods such as appliances, furniture, and coffee, but failed to improve the trade balance or boost US manufacturing -- two of the administration’s core objectives.

“Raise revenue for government? Yes. Improve trade balance? No sign yet of that. Improve US manufacturing? No sign yet of that,” she noted.

Summing up her analysis, Gopinath gave what she called a “negative scorecard” on the results of Trump’s tariff regime. “Overall, the score card is negative,” she concluded.

Trump’s tariff strategy, aimed at strengthening American manufacturing and reducing trade deficits, has faced mounting scrutiny amid concerns over inflation and global trade disruptions. Gopinath’s remarks add to a growing chorus of economists warning that the tariffs may be hurting the US economy more than helping it.

Adding to the alarm, the World Bank, on Tuesday, warned that higher US tariffs on Indian exports will weigh on South Asia’s growth trajectory in 2026.

“For 2026, the forecast has been downgraded, as some of these effects unwind and India continues to face higher-than-expected tariffs on goods exports to the United States,” the World Bank said in its latest regional outlook.

The Bank expects growth in South Asia, which includes India, Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives, to slow to 5.8% in 2026, down sharply from a projected 6.6% in 2025.

Nonetheless, despite this, India’s near-term growth outlook remains resilient. The World Bank raised its projection for India’s FY26 growth to 6.5% from 6.3%, citing strong government spending, even as it trimmed its FY27 forecast to 6.3%.

The US has imposed a 50% tariff on most exports from India, one of the steepest among Washington’s trading partners. The duties affect nearly $50 billion worth of Indian goods, hitting labour-intensive industries such as textiles, gems and jewellery, and shrimp exports.

Trump has announced tariffs of up to 50% on imports from several developing countries, including India, and a 100% tariff on branded and patented pharmaceutical drugs. The measures were pitched as part of his effort to boost American manufacturing and correct the US trade imbalance.