President Trump’s new tariff plan has caused a lot of concern. CNBC’s Steve Liesman, a top financial journalist, surprised viewers when he strongly criticized Trump’s latest trade threats. He even said he was risking his job by speaking out.
Trump recently warned that he would increase Canadian aluminum and steel tariffs to 50% unless Canada agreed to become the “51st state.” This statement shocked many people, including economists and business leaders.
Tariffs are special taxes on imported goods. When a country increases tariffs, foreign products become more expensive. Trump aims to make American products more competitive by making Canadian imports cost more. However, many experts believe this will cause problems for businesses and consumers in the U.S.
During a CNBC segment with anchor Kelly Evans, Liesman called Trump’s plan “insane” and said it could hurt the economy.
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“I’m going to say this at risk of my job, Kelly, but what President Trump is doing is insane,” Liesman said.
A top economics reporter goes off script on national TV: “I am going to say this at risk of my job, but what President Trump is doing is insane.” pic.twitter.com/IFvalgZmCN
— No Lie with Brian Tyler Cohen (@NoLieWithBTC) March 12, 2025
He also pointed to a Wall Street Journal article titled The Trade War Will Pound Stocks, by Greg Jensen, co-chief investment officer at Bridgewater Associates. The article warned that Trump’s high tariffs could scare away investors and harm the stock market. Liesman agreed, saying the U.S. needs foreign investment to support its economy, fund its budget, and keep stock prices high. He argued that Trump’s policies could drive investors away.
Businesses in the U.S. use Canadian aluminum and steel, so if these materials cost more, companies will have to spend extra money. This can increase prices for everyday products like cars, appliances, and canned goods. Investors also worry that the economy could slow down, lowering stock prices and hurting retirement savings. On top of that, foreign countries may stop investing in the U.S., which could mean fewer jobs and slower economic growth.
Liesman also pointed out that Trump’s second term differs from his first. During his first administration, he had advisors who sometimes softened his more extreme ideas. Now, Liesman believes Trump is acting more freely and making more significant decisions without as much control or advice.
“The other thing that’s not talked about, Kelly, is what’s going on within the administration in terms of how they’re treating the Constitution and laws,” Liesman added.
This statement suggests that some experts also worry about how Trump handles the government overall, not just trade policies.
Even though Trump threatened a 50% tariff, the new tariffs officially took effect at the original 25% rate. However, his warning is still severe. It could create more economic uncertainty if he decides to follow through on the 50% increase.
Featured image via Screengrab
