Trump’s Tariffs And ‘Dumb Policies’ Are Hurting Business Demand, Says Anthony Scaramucci: Consumers Are ‘Sheltering In Place’
Former White House Communications Director Anthony Scaramucci criticized President Donald Trump’s trade and tariff policies, blaming them for rising inflation, along with the slowdown in business and consumer demand.
‘Dumb Policies’ To Blame
On Monday, in a post on X, Scaramucci, who had a brief stint in the White House during Trump’s first term, before turning into a vocal critic, said that “business demand is way down,” alongside rising inflationary pressures, which he attributes to the tariffs.
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He notes that the “forward shipments of goods (6 months from now) are way down,” which means there is a sharp drop in future orders and delivery schedules, which is seen as a sign of economic weakness, as companies cut back on purchases when there is declining confidence in demand.
Scaramucci also said that “there are consumers sheltering in place,” meaning they are increasingly cautious and pulling back on spending, which he again attributes to the administration’s “dumb policies.”
U.S. On The ‘Foothills of Stagflation’
Scaramucci’s views align with several prominent economists, such as former Treasury Secretary Lawrence Summers, who said last month the tariffs were leading the U.S. to “the foothills of stagflation,” an economic condition characterized by slow economic growth, high unemployment and inflation.
Last month, economist Justin Wolfers echoed similar concerns, saying that Americans could soon get “‘two bad tastes at the same time’—rising unemployment and rising inflation,” as a result of Trump’s tariffs.
A few weeks ago, Wolfers said that the situation has put the Federal Reserve and its Chair, Jerome Powell, in a bind. “The problem that Powell faces right now is a very difficult one,” Wolfers said, adding that the tariffs have “caused a slowdown in economic activity and rising unemployment. And we’ve got high-and-rising inflation.”
This, he said, leaves the Federal Reserve in a difficult spot, unable to cut interest rates to spur economic activity. The solution, he said, was to “get rid of the tariffs,” adding, “That’s what solves both of these problems.”
Tariffs Beginning To Yield Results?
While a majority of Americans believe that Trump’s policies have harmed the U.S. economy, particularly due to the tariffs, there are areas where the tariffs have begun yielding results.
This comes amid foreign direct investment from Japan hitting a record high this year, as Japanese firms begin to shift production to the U.S. Marcel Thieliant, the head of Asia-Pacific at Capital Economics, said last week that “firms are responding to U.S. tariffs by stepping up production in their U.S. subsidiaries.”
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