‘Donald Trump’s tariffs are helping to defray the US fiscal deficit now — but ultimately, they’ll weaken the economy’

Alan Auerbach highlights America's economic strengths in innovation and flexibility, but expresses concern over policies disrupting the economy. He points out the unbalanced distributional consequences of recent fiscal policy, leading to unsustainable national debt. Auerbach suggests addressing entitlement programs and tax system adjustments, emphasizing the need for political cooperation to tackle the challenge.