Trump Former Advisor Backtracks: Tariffs Are Essentially a "Stealth Tax" or Drag on the Economy and Employment

**December 31st Update** Stephen Moore—a conservative economist and former senior economic advisor to Donald Trump’s first term—recently publicly criticized the Trump administration’s broad tariff policies, labeling them a "hidden tax" on consumers that could dampen economic growth and weaken employment. "Tariffs are taxes, and taxes are never a good thing," Moore said—a stance sharply at odds with his past support for trade protectionism. He noted that while the government frames tariffs as a tool to revitalize manufacturing and fund tax cuts, their costs are often passed directly to consumers, driving up prices and worsening inflation. Multiple research institutions project a new round of tariffs set to take effect by 2025 could raise the U.S. tax burden by roughly $1.2 trillion over the next decade, cutting GDP by about 0.4% and eliminating 344,000 jobs. Moore also emphasized tariffs’ regressive nature, which hits low- and middle-income families hardest. Moore called for targeted, time-limited tariffs if they continue, plus quick tax cuts to offset negative impacts. Observers view his shift as a sign of growing internal divides in the Trump camp between free-market principles and trade protectionism, adding uncertainty to U.S. economic policy direction in 2026.