Economist who previously slammed Trump explains how the president could have ‘outsmarted us all’ with one specific move
As U.S. stock markets closed at record highs on June 27, a leading Wall Street economist admitted he may have misjudged President Donald Trump’s bold tariff strategy. Joe Yates reported that Trump’s controversial trade moves may be paying off.
After returning to office in January, Trump swiftly imposed tariffs on key trading allies like Canada, Mexico, and China. He later expanded them to cover imports from every nation—yes, even one inhabited only by seals and penguins. Countries that retaliated faced even steeper tariffs.
China took the hardest hit, with President Xi Jinping’s counter-tariffs prompting the U.S. to slap up to 145% taxes on certain Chinese imports. The impact was significant, with protests and temporary factory closures across China.
Despite warnings, the U.S. economy remains strong, with the S&P 500 and Nasdaq reaching all-time highs. Torsten Sløk of Apollo Global Management, previously a vocal critic, had predicted a recession by summer due to the tariffs.
However, Sløk has changed his stance. In a June 21 blog post, he acknowledged the possibility that Trump’s approach might be strategic, suggesting a longer adjustment period for countries could reduce uncertainty and benefit markets.
He even proposed that maintaining current tariffs could generate $400 billion annually for the U.S., while nudging other nations to reduce non-tariff trade barriers—making the outcome potentially beneficial for all.
Trump remains firm in his belief that tariffs will lead to fairer trade and increased domestic manufacturing. Still, Americans may first face higher prices as retaliation from trade partners continues.
