In a significant shift from his previous support, former Trump economic adviser Stephen Moore has expressed serious concerns about the potential impact of sweeping tariffs. These tariffs, a cornerstone of President Donald Trump‘s trade policy, are increasingly viewed by Moore as hidden taxes that could jeopardize American jobs. This cautionary stance emerges as the U.S. economy faces challenges related to inflation and global trade tensions in 2025.
During a recent interview, Moore highlighted the risks associated with tariffs, stating, “Tariffs are taxes—and taxes are bad.” This statement marks a departure from his earlier enthusiasm for protectionist measures, which he had championed during Trump’s first term. According to Business Insider, his evolving perspective reflects a broader debate among conservative economists regarding the real-world effects of tariffs on economic growth and household budgets.
The backdrop of this discussion is the economic landscape of 2025, where rising prices and inflation are putting pressure on consumers. Moore’s previous role in shaping Trumponomics included advocating for tax cuts and trade barriers designed to protect American industries from foreign competition, particularly from China. Despite the intention of revitalizing U.S. manufacturing, independent analyses, such as those from the Tax Foundation, suggest that the tariffs—ranging from 25% on imports from Canada and Mexico to 10% on Chinese goods—could lead to an increase in taxes by $1.2 trillion over the next decade, while also reducing GDP by 0.4% and costing approximately 344,000 jobs.
Moore’s recent comments reflect a growing unease within the conservative economic community. He has recognized that tariffs may disproportionately impact lower-income households by raising the prices of everyday goods. In an October 2025 interview with Fortune, he pointed out that tariffs have already contributed to higher costs and slower economic growth.
The Economic Impact of Tariffs and Market Reactions
As the year progresses, the consequences of Trump’s tariff policies have become increasingly evident. The tariffs, which target a wide array of imports—including electronics and agricultural products—are intended to safeguard domestic industries. However, critics argue that this strategy has led to inflationary pressures, with consumer prices rising as businesses pass on their increased costs.
Economic analyses shared on social media platforms like X indicate that households may face additional expenses averaging $830 annually due to these tariffs. Concerns have also been raised regarding a potential contraction in GDP of 4-6% over the next decade, exacerbated by labor disruptions linked to related policies.
Market reactions have shown volatility, particularly in sectors like retail and manufacturing, as stock indices fluctuate in response to tariff announcements. Moore has also voiced concerns about Trump’s involvement in setting prices for pharmaceuticals and agricultural products, warning that such interventions could distort market dynamics and unsettle investors.
Policy Intersections: The Call for Tax Cuts
At the core of Moore’s critique lies the relationship between tariffs and tax policy. He has urged Congress to prioritize the extension of the 2017 tax cuts, which are set to expire in 2025. In a Guardian interview, he described Trump’s tariff strategies as “misguided” in certain respects, indicating a shift from his previous endorsements. This perspective aligns with broader economic modeling, suggesting that tariffs effectively act as a tax increase on the middle class, offsetting any benefits from tax reductions.
Moore emphasizes the need for tariffs to be “targeted and temporary” rather than applied broadly, warning that prolonged tariffs could hinder economic growth. His involvement in Project 2025, a conservative policy initiative, further complicates his stance as he navigates the conflicting pressures of free-market principles and the populist elements of Trump’s trade agenda.
The international ramifications of these tariffs have also been significant. Retaliatory measures from trading partners such as China and the European Union have severely impacted U.S. agricultural exports, hitting rural economies particularly hard. A recent overview by the Los Angeles Times highlights how these policies have led to a tumultuous trade relationship, resulting in both concessions and heightened global tensions.
Moore’s warnings reflect the ongoing challenges faced by the administration and the economic perceptions of voters. Despite signs of recovery, such as rising GDP and job gains, lingering inflation due to tariffs has fostered skepticism among the public about the economic outlook. He pointed out the disconnect between positive data and negative public sentiment, urging clearer communication to address these concerns.
As discussions surrounding tariffs continue, Moore’s insights could influence future policy adjustments. His acknowledgment of being “not a big fan” of tariffs, despite recognizing their purpose, suggests a potential for recalibration as the administration seeks to balance protectionism with fiscal responsibility.
As the debate surrounding tariffs and taxation unfolds, Moore’s evolving perspective may shape legislative priorities. With a divided Congress, his push for action before the Memorial Day deadline, as noted in the Guardian, could galvanize support for tax reforms aimed at mitigating the economic drag caused by tariffs.
As 2025 transitions into 2026, Moore’s voice serves as a crucial indicator of the tensions within conservative economic thought. His blend of cautious optimism regarding trade negotiations and apprehension about tariffs underscores the complexities of navigating economic policy in a polarized environment.
