Former Trump Advisor Changes Tune: Tariffs Are Essentially a "Hidden Consumption Tax" and May Drag Down the Economy and Employment

BlockBeats News, December 31 — Stephen Moore, the conservative economist who served as a senior economic adviser during Trump’s first term, has recently publicly questioned the Trump administration’s large-scale tariff policies, calling them essentially an “invisible tax” imposed on consumers that could drag down economic growth and weaken employment.

Moore stated, “Tariffs are taxes, and taxes are never a good thing,” a remark that stands in stark contrast to his previous support for trade protectionism. He pointed out that although tariffs are seen by the government as tools to revitalize manufacturing and fund tax cuts, their costs are ultimately often passed on to consumers, driving up prices and exacerbating inflation.

Data from multiple research institutions show that the new round of tariff policies to be implemented in 2025 could increase the tax burden by about 1.2 trillions USD over the next decade, cause the US GDP to decline by about 0.4%, and reduce employment by 344,000 jobs. Moore also acknowledged that the regressive nature of tariffs would have a greater impact on low- and middle-income families.

Moore called for any continued implementation of tariffs to be targeted and time-limited, and for tax cuts to be enacted as soon as possible to offset negative effects. His shift in stance is seen by outsiders as a sign of deepening divisions within the Trump camp between free-market principles and trade protectionism, adding uncertainty to the direction of US economic policy in 2026.