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Economist: Trump’s Claim That Tariffs Raise 'Trillions' Is 'Nonsense'

09:14 PM, 12/01/2025
Economist: Trump’s Claim That Tariffs Raise 'Trillions' Is 'Nonsense'

University of Michigan economist Justin Wolfers called President Trump’s claim that tariffs are generating “trillions” in revenue “nonsense,” saying the numbers don’t add up. He argued that if tariffs truly brought in trillions, proposed $2,000 checks would be affordable. Wolfers also warned U.S. stock returns lag many peers and noted consumer confidence is near historic lows, with roughly three-fifths of Americans rating economic policy poorly.

University of Michigan economist Justin Wolfers sharply rejected President Donald Trump’s assertion that import tariffs are bringing in “trillions” of dollars in revenue and could nearly eliminate federal income tax. Speaking during a weekend television appearance, Wolfers said the claim rests on a basic misunderstanding of numerical scale.

Wolfers, an Australian economist who previously taught at the Wharton School of the University of Pennsylvania, told hosts Eugene Daniels, Jackie Alemany and Jonathan Capehart that the president’s figures simply don’t add up.

“This is just nonsense. Let me start with one important fact-check: the president appears not to understand the difference between millions, billions and trillions. They’re massively different. We are not taking in trillions of dollars in tariff revenue,”

Wolfers offered a practical test: if tariffs were producing trillions, the federal government could easily fund the proposed $2,000 tariff checks. “We aren’t. So therefore, we can’t,” he said.

Stock market and consumer sentiment

Wolfers also pushed back on the president’s frequent praise of the stock market, noting that U.S. returns lag many other large economies. “If you look at stock market returns across 25 of the biggest countries, the United States currently ranks around 22nd,” he said. “So yes, American stocks are up — but they’re up even more elsewhere.”

The economist pointed to weak consumer sentiment as further evidence that the public is unconvinced by the administration’s economic narrative. A recent poll found roughly 60% of respondents say the president’s optimistic description of inflation does not match their experience, and measures of consumer confidence are close to historic lows dating back to the 1970s.

When asked about the quality of U.S. economic policy, about three-fifths of Americans describe it as poor, Wolfers said. “What you have, I think, is that the president has fundamentally lost the battle of ideas,” he added. “There’s a deep question as to how long people are going to keep spending.”

The White House did not immediately respond to a request for comment.

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