'Addictive' Trump Tariffs Are 'Here To Stay' Even If Democrats Come Back To Power, Says Wharton Professor: 'The Truth Is Governments Need Revenues'

A professor from the Wharton Business School has suggested that tariffs implemented by President Donald Trump are likely to continue despite political opposition.

What Happened: Professor Joao Gomes of the Wharton Business School, in a podcast, The Trade War Playbook: Tariffs, Uncertainty, and U.S. Economic Policy, stated that both Democrats and Republicans are likely to support tariffs due to their potential to generate revenue.

“I think the end game is some tariffs are here to stay,” Gomes said, adding that they are “addictive for every country in the world.” He further suggested that the nature and extent of these tariffs are uncertain but they are “definitely not a thing of the past.”

"The truth is governments need revenues and once you see the amount of revenue the tariffs bring, I think Democrats will be addicted to them as Republicans—or are as likely to be," explained Professor Gomes.

While the British government has secured a ‘first mover’ deal with the Trump administration, Gomes stated that the number of such deals to be made remains uncertain.

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Why It Matters: Analysts are now exploring the potential for targeted tariffs on particular industries or products. In a recent note, UBS Group AG indicated that such measures could be implemented as soon as this summer, following trade investigations into key sectors such as pharmaceuticals, critical minerals, lumber, copper, and semiconductors.

Trump’s steep tariffs on countries have received widespread criticism from Democrats and major economists. On Monday, JPMorgan Chase & Co. JPM CEO Jamie Dimon cautioned the market about displaying an “extraordinary amount of complacency” amid the risks posed by tariffs, record U.S. deficits and geopolitical tensions.

However, U.S. Treasury Secretary Scott Bessent dismissed concerns over the inflationary impact of tariffs on companies such as Walmart Inc. WMT. Meanwhile, former PIMCO CEO and current Allianz's chief economic adviser, Mohamed El-Erian, has suggested that the era of U.S. exceptionalism is on pause due to tariff wars and economic uncertainty, but it’s not over. He believes it’s too early to say if the damage inflicted is irreversible.