Experts weigh in on Trump’s tariff plan amid economic uncertainty

As concerns about the U.S. economy grow, some experts argue that the Trump administration is overstating the risks.

(CNN)- As concerns about the U.S. economy grow, some experts argue that the Trump administration is overstating the risks. Nobel Prize-winning economist Paul Krugman suggests that officials are crafting a negative economic narrative despite the absence of a significant downturn.

“They’re sort of making excuses and stories about a bad economy when we don’t yet have a bad economy,” Krugman said.

Despite a grim forecast from the Organisation for Economic Co-operation and Development (OECD), some economists say it’s not too late to avoid inflation and a potential slowdown. However, the Trump administration is warning of economic uncertainty in the months ahead. “There are no guarantees,” said Treasury Secretary Scott Bessent. Kevin Hassett, Director of the White House National Economic Council, added, “Between now and April 2nd, there’ll be some uncertainty.”

April second is when president Donald trump says he will unveil sweeping new tariffs. He claims they will provide negotiating leverage, protect domestic industries, and address trade deficits. “It’s a liberation day for our country because we’re going to be getting back a lot of the wealth that we so foolishly gave up to other countries,” Trump stated.

However, the OECD report warns that if U.S. businesses face higher tariffs, American consumers could see price hikes, and the economy could slow down. Still, some financial analysts remain optimistic. “A lot of the fundamentals are still in pretty good shape,” said Ted Rossman, a senior industry analyst at Bankrate. Krugman believes the administration has already accepted the likelihood of economic trouble. “It’s almost as if the Trump economic team has accepted that bad things are gonna happen,” he noted.

While the President defends tariffs, other countries are preparing retaliatory measures and trade agreements that exclude the U.S. Rossman suggests that the uncertainty surrounding tariffs could be a crisis of the administration’s own making—and one that could still be avoided. “That’s kind of a self-created crisis. I feel like that could be pretty easily reversed if needed,” he said.