Lawrence Summers, a former Treasury Secretary under Bill Clinton, has strongly criticized President Donald Trump’s sweeping tariffs announcement, calling it “entirely without precedent” and “extremely dangerous”.
Summers stated that if he were in Trump’s shoes, he would resign as President in protest to the damage and backlash this policy has generated.
Summers’ comments in a post on X come after Trump’s announcement of reciprocal tariffs, which has received widespread criticism from businesses and experts worldwide.
The US stock market experienced its worst drop in five years, with Summers noting that such a severe reaction is unprecedented in response to a policy backed by the President.
The tariffs are expected to have far-reaching consequences, including a potential reduction in US GDP by 0.8% and an increase in federal tax revenue by nearly $3.2 trillion over the next decade.
“Today was the worst stock market experience in five years. Usually when you have a terrible stock market experience, it’s because a bank fails, a pandemic, a hurricane or because some other country does something,” Summers wrote.
“We don’t have these kinds of stock market responses in response to policies that the President of the United States is proud of. That is something that is entirely without precedent. It is extremely dangerous.
“If any administration of which I was a part had launched an economic policy so totally ungrounded in serious analysis or so dangerous and damaging, I would have resigned in protest.” he added.