As President Trump unveils his global tariff plan—imposing a baseline 10% tariff on all imported goods, with additional hikes based on individual countries’ trade balances—economists like Richard Wolff warn of severe economic consequences. Wolff argues that these tariffs will significantly impact American consumers and could lead to a recession. He believes that Trump’s tariff strategy is rooted in the misguided idea that the United States is a victim, despite having been one of the biggest economic beneficiaries over the past 50 years, particularly for those at the top.
According to Wolff, Trump and his allies are reacting to the global economic rise of other nations and the decline of U.S. hegemony with desperation and denial. Instead of acknowledging the shifting global landscape, they are targeting foreign competitors in an attempt to maintain U.S. dominance. However, Wolff asserts, “[It’s] not going to work.”
The global reaction to Trump’s tariffs has been swift. Stock markets have plummeted, and many U.S. trading partners—including the European Union, China, and Japan—are now imposing retaliatory tariffs. China alone faces a total tariff of 54%. Trump, during a speech in the White House Rose Garden, declared April 2, 2025, as “Liberation Day,” claiming it marked the rebirth of American industry. He framed the tariffs as a necessary measure to combat decades of economic exploitation by foreign nations.
While Trump insists that these tariffs will revitalize the U.S. economy, many economists fear they will trigger inflation, higher consumer prices, and job losses, potentially leading to a recession. Countries affected by these tariffs are already forming new trade alliances, with China, Japan, and South Korea strengthening economic ties in direct response.
Richard Wolff emphasizes that the American economy is in trouble and that the decline of U.S. global influence is an inevitable historical pattern. “The British Empire declined before us, as did many others,” he explains. However, instead of confronting these challenges with strategic planning, Wolff argues that the U.S. is engaging in denial, blaming external forces, and lashing out with protectionist policies that will likely backfire.
Furthermore, he criticizes Trump’s claim that tariffs are paid by foreign nations, clarifying that tariffs function as an import tax that is ultimately passed on to American consumers. “It’s just another tax,” Wolff explains. “And ironically, the Republican Party, long known for its anti-tax stance, is now imposing one of the largest tax hikes in history.”
Despite some support for tariffs from figures like UAW President Shawn Fain, who sees them as a tool to pressure companies into bringing jobs back to the U.S., Wolff warns that tariffs often do more harm than good. While they may temporarily protect some industries, they can also raise consumer prices, reduce international sales of American goods due to retaliatory tariffs, and destabilize the economy. “No one knows whether the jobs lost due to this trade war will outnumber the jobs gained,” Wolff cautions.
Looking at the bigger picture, Wolff sees these policies as part of a broader trend of American decline. He highlights the economic and political isolation of the U.S. on the global stage, drawing comparisons to historical shifts in power. He warns that by pursuing aggressive economic nationalism, the U.S. risks alienating allies and strengthening rival economic blocs, such as the BRICS nations, which now collectively surpass the G7 in economic output.
Ultimately, Wolff argues that America’s refusal to acknowledge its changing role in the world is preventing it from adapting effectively. He compares the situation to alcoholism, stating that the first step to recovery is admitting there is a problem. “The world is changing,” he concludes. “And the United States could cope—but only if it first acknowledges reality.”