Ford School professor Betsey Stevenson has been widely sought for her insights, and concerns, about the implications of the Trump administration's proposed tariffs. Here are some of the notes Stevenson has shared with news outlets over the past few weeks.
“Chip Stocks Sink on Export Curbs” Bloomberg, April 16, 2025 - Regarding recent stock market instability, Stevenson told Bloomberg, "I do think that he [Jerome Powell, Federal Reserve chairman] is going to reassure financial markets that we have a strong and solid monetary policy team and that they will step in if necessary." Stevenson also asserted that, "Powell is in a difficult position because he needs to calm the markets down and he also needs to make sure that he doesn't put the Fed at any kind of risk from retribution from President Trump."
“‘We’re going to pay more to buy less:’ Economists on tariff consequences” CNN, April 7, 2025 - “What is really going to happen is we are going to pay more for stuff, because we’re going to pay more for stuff we are going to buy less stuff, and that’s why markets are melting down," Stevenson shared with CNN. The economist expressed further her concerns surrounding price increases and across the board, rather than strategic, tariffs.
“Debate: will Trump’s tariffs lead to an all-out trade war with China?” Channel 4, April 7, 2025 - "What we’re seeing is not targeted tariffs that are trying to help support certain aspects of American industry. This is across the board tariffs," said Betsey Stevenson. In a debate with an ex-campaign aide for President Trump, Stevenson talked about the true results of the policy. "[We] expect the quantity [of American goods] sold to go down. We are going to consume less because prices are going to be a lot higher," Stevenson asserted.
“Trump Says No Pause on Tariffs” Bloomberg, April 7, 2025 - Bloomberg Network spoke with Stevenson about what the Fed will do in response to Trump's tariff policies. Stevenson stated, "There is clearly an inflation risk, and we know that these tariffs are going to bring inflation. Of course, what they bring is a one-time jump up in prices, and so the Fed has to ask, 'Can we look through this period of inflation?'" Additionally, Stevenson expressed her concern that the Fed isn't necessarily sure how to handle the situation. "The challenge that I think the Fed has is it's just not 100% sure what it should be doing."
“This Is the ‘Most Regressive’ Tax Increase Ever Been Passed in the U.S., Trump Doesn’t Have the Power to Tax Like That” MSNBC, April 5, 2025 - In line with her sentiments across other networks, Stevenson told MSNBC that "This is the largest, most regressive tax increase that’s ever been passed in the U.S."
“Needless economic pain from Trump not even worth it if his tariff gambit works:” MSNBC, April 3, 2025 - When MSNBC asked what Trump's tariffs will mean for "ordinary American's," Stevenson replied, "Well obviously, ordinary Americans who are already relying on their savings, retirees, are already seeing that they’re taking hits to what they have." Stevenson continued to added that the even larger problem American's may face is, "price increases, and they will happen pretty quickly. We might not see them tomorrow, we might not even see them next week, but I think within the end of the month, if these tariffs stick, I don’t think there are a lot of companies out there that aren’t going to be able to withstand paying these tariffs without passing it onto their customers quite quickly."
“US tariffs rock global financial markets” ABC Australia, April 3, 2025 - Speaking with ABC Australia, Stevenson gave her first impressions on the impacts tariffs are having on the economy. She noted that her perspective is commonly shared by many economists. “I think the initial reaction is that this is bad. It’s much worse than most forecasters predicted. Most economists, most forecasters who had watched President Trump in the first term, thought that you know, he was kind of like a dog who had more bark than bite. And so, we knew he was going to bark a lot about tariffs, but we didn’t think he was really going to bite with them. He really came out biting with them and that really threatens the U.S. economy perhaps more than anyone else.”
