Fox News anchor Sandra Smith parroted a tweet from President Donald Trump crediting the recent 3.2% GDP growth in part on his tariffs on imports from China. But economists, including those with the nonpartisan Congressional Budget Office (CBO), have explained that Trump’s tariffs have actually slightly depressed U.S. GDP growth.
Economists warned at least a year ago that Trump’s tariffs would hurt the U.S. economy. Now, a May 10 CNBC article quoted Oxford Economics economist Greg Daco, who estimated that “the tariffs in place since last year depressed U.S. gross domestic product by about 0.1 percentage point this year.” Daco further estimated that Trump’s new tariffs and China’s retaliatory tariffs would “cut U.S. GDP by 0.3 percentage point next year, costing the U.S. economy about $62 billion.” Daco’s estimate of the tariffs’ effect so far matches a January estimate by the CBO that Trump’s tariffs “will limit growth of U.S. real gross domestic product by an average of 0.1 percent each year for the next 10 years if they remain in place at current levels.” Fox has previously downplayed the negative economic impacts from Trump’s tariffs, but Smith ignored them entirely when she repeated Trump’s lie.
From the May 13 edition of Fox News’ America’s Newsroom:
SANDRA SMITH (CO-ANCHOR): You know, it’s amazing to see the president in his words this morning, he’s been tweeting a lot this morning. Here’s one of them: “The unexpectedly good first quarter 3.2% GDP was greatly helped by tariffs from China. Some people just don't get it.” You know, in the wake of that monstrous GDP number and the big drop in the unemployment rate and the added jobs that we recently saw, some who don't usually give the president credit for the growth in the economy were giving him credit there. Here is the president saying you’re not giving me enough credit for what this has already done to the United States.