Former Trump advisor changes stance: tariffs are essentially an "invisible consumption tax" that could drag down the economy and employment

On December 31, the conservative economist and former senior economic advisor during Trump’s first term, Mohr, recently publicly questioned the large-scale tariff policies of the Trump administration, stating that they are essentially an “invisible tax” on consumers, which could hinder economic growth and weaken employment. Mohr said, “Tariffs are taxes, and taxes are never a good thing,” a stark contrast to his past support for trade protectionism. He pointed out that although tariffs are viewed by the government as a tool to revitalize manufacturing and fund tax cuts, their costs are ultimately passed on to consumers, driving up prices and exacerbating inflation. Data from multiple research institutions show that the new round of tariffs implemented in 2025 could increase tax burdens by approximately $1.2 trillion over the next decade, reduce US GDP by about 0.4%, and eliminate 344,000 jobs. Mohr also acknowledged that the regressive nature of tariffs would have a greater impact on low- and middle-income families. He called for targeted and time-limited tariff measures if they are to be continued, along with prompt tax cuts to offset the negative effects. His shift in stance is seen by external observers as a sign of deepening divisions within the Trump camp between free market principles and trade protectionism, adding uncertainty to the direction of US economic policy in 2026.