Trump Tariffs Could Live On Even Under Democrats, Former Commerce Chief Raimondo Warns: ‘Hard To Take Off’

• She said Biden largely maintained the levies imposed during the first Trump administration to avoid the perception of abandoning domestic labor.
• Goldman Sachs Group Inc. President John Waldron added that a complicated labor environment expected next year would only worsen these political sensitivities.
• Raimondo also expressed her doubts over the impact of tariffs on boosting the U.S. manufacturing sector.

Former U.S. Commerce Secretary Gina Raimondo reportedly said on Wednesday that President Donald Trump’s tariffs would likely last beyond his administration, due to political fears that removing protectionist barriers will turn away workers who fear losing their jobs to offshoring and AI.

Gina Raimondo, who served as the Secretary of Commerce under President Joe Biden, said at the Bloomberg New Economy Forum in Singapore that the political cost of rolling back the tariffs is too high for any future administration, regardless of party.

Complicated Labor Environment To Worsen Political Sensitivities

“Tariffs, once they’re put on, are hard to take off,” Raimondo said, according to a Bloomberg News report. “No one wants to be the American president accused of letting down the American worker. Tariffs protect the American worker. And I think AI makes it more so of a political reality.”

She added that Biden largely maintained the levies imposed during the first Trump administration to avoid the perception of abandoning domestic labor, despite her urging to reduce some levies.

Goldman Sachs Group Inc. President John Waldron, who was present on the panel, also agreed and added that a complicated labor environment expected next year would only worsen these political sensitivities.

Earlier this year, the investment bank estimated that innovation related to AI could displace 6-7% of the US workforce if the technology is widely adopted. In recent weeks, companies ranging from Amazon and Walmart to McKinsey have announced layoffs amid a rise in AI adoption. However, Goldman Sachs also expected that newer applications of AI would create more jobs for the workforce.

On Wednesday, Raimondo also expressed her doubts over the impact of tariffs on boosting the U.S. manufacturing sector. She reportedly stated that while they help protect strategic sectors like semiconductors and pharmaceuticals, they often act as a headwind by increasing costs for U.S. factories that rely on imported inputs.

US stocks Have Still Posted Gains This Year Amid Tariff Turmoil

Despite the volatility induced by the ‘Liberation Day’ tariffs in April, the S&P 500 has gained over 12.7%, while the Nasdaq 100 is up over 16.7%. The gains have largely been fueled by the so-called “Magnificent 7” tech companies, which have poured billions into the U.S. economy to ramp up AI infrastructure.

Retail sentiment on Stocktwits SPDR S&P 500 ETF Trust (SPY) was in the ‘bearish’ territory at the time of writing, while traders were ‘neutral’ about the Invesco QQQ Trust Series 1 (QQQ), which tracks the Nasdaq 100.

Also See: Barrick Overhauls Top Team Amid Reported Elliott Stake Build — Is A Bigger Breakout Coming?

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on