Trump’s Tariff Policy Is a Complete Failure, Former US Official Declares

At the Shanghai Forum 2026, Thomas Fingar, former US Assistant Secretary of State and current Stanford fellow, delivered a scathing verdict on Donald Trump’s tariff policy, labeling it a “complete failure.” Speaking to media, including Yicai, Fingar highlighted how the administration’s trade approach has eroded US credibility and destabilized global commerce.

The original goals of the tariffs were clear: shrink the US trade deficit, stimulate domestic manufacturing investment, and create a fairer playing field for American companies. None of these objectives were met. Instead, tariffs pushed up prices of imported goods, increased production costs for US businesses, and raised living expenses for everyday Americans.

Fingar explained that manufacturing investment depends on factors like market demand and business environment, not simple tariff barriers. Far from protecting US industry, the tariffs sparked retaliatory measures from trading partners and strained relations with allies. The resulting trade frictions have only deepened economic uncertainty.

Legal challenges have further undermined the tariff program. On February 20, the US Supreme Court ruled most of Trump’s tariff hikes unconstitutional under the International Emergency Economic Powers Act. This decision opened the door for refunds estimated between $166 billion and $176 billion. Despite this setback, the administration aims to revive tariffs by finding new legal justifications.

Complicating matters, global inflation pressures from the Middle East conflict have made tariff increases politically and economically risky. Growing opposition within the administration warns that tariffs could worsen inflation and harm the US economy. The future of the policy remains uncertain.

Phillip Swagel, Director of the Congressional Budget Office, cautioned that recent tariff changes might add $1.1 trillion to the federal deficit over the next decade, though exact figures are unclear amid shifting policies.

Fingar also criticized Washington’s broader unilateralism, which has disrupted the international trade system and global governance. He stressed the need for multilateral cooperation to rebuild a stable global order, warning that the US’s unpredictability is pushing allies to bypass it to protect their interests.

The Trump administration’s trade missteps reflect a larger pattern of erratic policy and damaged soft power, with consequences for America’s standing worldwide. As the US prepares for key diplomatic events in 2026, the fallout from these failed tariffs will continue to shape economic and geopolitical dynamics.