'Dr. Doom' Nouriel Roubini: Trump's 'Liberation Day' Tariff Label Is Orwellian Doublespeak, US 'Playing With Fire'

Nouriel Roubini, voiced strong criticism on Monday regarding President Donald Trump’s declaration of “Liberation Day,” which marks the imposition of new tariffs. Roubini described the term as “literally Orwellian doublespeak,” suggesting that the tariffs would lead to “lower growth and higher inflation.”

What Happened: The prominent economist sometimes referred to as “Dr. Doom,” emphasized that the real impact of these tariffs would depend on the negotiations, which he anticipates will be “ugly and long-drawn.” Roubini questioned the notion of “liberation,” arguing that it would not benefit U.S. consumers, workers, or businesses, nor the global economy.

He further expressed skepticism about whether the “escalate to de-escalate” strategy, mentioned by Bessent, would prevail over the views of trade hawks like senior counselor for trade and manufacturing Peter Navarro, Commerce Secretary Howard Lutnick, trade negotiator Jamieson Greer, and Trump, whom he called “the biggest trade hawk of all.” Roubini suggested that advisors like economic adviser Kevin Hassett and chair of the Council of Economic Advisers Stephen Miran should guide the President towards more sensible decisions. He warned that the U.S. is “playing with fire” with these tariff policies.

Roubini’s comments came as Trump declared a national emergency to address foreign trade practices, imposing tariffs to protect American workers and strengthen the U.S. economy. The tariffs are part of a broader strategy to boost domestic manufacturing and reduce the trade deficit.

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Why It Matters: The tariffs, set to take effect on Wednesday, have sparked significant debate. Trump claims they will reduce economic dependence on foreign goods and revive U.S. manufacturing.

The executive order invokes the International Emergency Economic Powers Act to impose a universal 10% tariff on all imports effective April 5, followed by higher individualized tariffs on countries with the largest trade deficits with the U.S. starting April 9. The White House claims these measures will address non-reciprocal trade relationships, currency manipulation, and other unfair practices while boosting domestic manufacturing, protecting American workers, and strengthening economic sovereignty.

However, critics like Anthony Scaramucci have labeled “Liberation Day” as “Liquidation Day,” warning of potential financial burdens on Americans. The tariffs are part of Trump’s broader economic strategy, which has been criticized for potentially leading to higher inflation and slower growth, as noted by Roubini in previous analyses.

Roubini, known for his accurate prediction of the 2008 financial crisis, has consistently expressed concerns about Trump’s economic policies.

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal