White House Admits That Trump’s Trade Policies Hurt The U.S. Economy
White House economist Tomas Philipson acknowledged this week that President Donald Trump’s trade policies caused some harm to the U.S. economy, according to Bloomberg News.
“Uncertainty generated by trade negotiations dampened investment,” Philipson said after Thursday’s release of the annual Economic Report of the President.
The 435-page report focused primarily on the benefits Trump’s policies bestowed upon the American people, while largely bypassing any negative impacts the president’s trade policies might have had.
Philipson did not go into much detail during a press briefing but told reporters that a Federal Reserve study found the negative impacts could cut gross domestic product (GDP) by about 1 percent.
The acting director of the Council of Economic Advisers also added that he disagrees with the estimate and said he remains hopeful that as uncertainty over Trump’s trade policies fade, both the U.S. and global economies will see more growth.
Last year, the U.S. economy grew by 2.3 percent, down from 2.9 percent the year before.
"Uncertainty about trade policy is one often-cited culprit in the manufacturing slowdown," the report reads. "However, other reasons for the global manufacturing slowdown also preceded, or were contemporaneous with trade . . . These reasons make it difficult to isolate the effects of trade policy uncertainty and possibly result in an upward bias of its effects on the global economy."