The Economics Show The ugly truth about Trump’s ‘beautiful tariffs’. With Martha Gimbel
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Sep 19, 2025 
Martha Gimbel, Executive Director of Yale's Budget Lab and former White House adviser, joins to dissect Trump's ambitious tariff plans. They discuss how tariffs, once vital for US funding, are now back in focus but bring baggage. Gimbel highlights the balance between revenue generation and economic drawbacks. The conversation delves into the legal challenges, the pressures on the labor market, and the lasting impacts tariffs may have until 2029. Tune in for a thought-provoking take on a hot-button issue!
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Tariffs As A Political Revenue Patch
- The US faces rising deficits and limited political appetite to raise revenue or cut spending.
- Markets welcome tariffs mainly because they bring revenue despite economists preferring other tax options.
Tariff Revenues Are Uncertain
- Revenue forecasts vary widely because firm and consumer responses are unpredictable and tariffs can be reversed by executive action.
- Uncertainty about compliance and future policy makes tariff revenue volatile.
Legal Risks Could Cut Revenue Big
- Courts have ruled some tariffs illegal and the Supreme Court outcome is uncertain, making revenue prospects risky.
- If overturned revenue falls sharply but alternative slower legal routes exist to reimpose tariffs.