Conservative political commentator Ben Shapiro criticized President Donald Trump’s recent concessions on trade and tariffs as a quiet admission of the inflationary outcome of trade barriers.
Tariff Rollbacks Are A ‘Tacit Admission’
Shapiro highlighted new trade agreements the administration announced this week with Argentina, Guatemala, El Salvador, and Ecuador on his show last week, impacting commodities such as coffee and bananas.
Under the framework, the U.S. will revoke tariffs on products that “cannot be produced in the United States in sufficient quantities, like coffee,” while maintaining a 10% levy on most imports from Guatemala, Argentina and El Salvador, and a 15% tax on goods from Ecuador.
According to Shapiro, the move signals a major policy concession, which he described as “a tacit admission that tariffs increase prices on American consumers.”
He underscored the basic economics behind the price impact, noting that when supply tightens while demand stays the same, costs inevitably rise. Using bananas as the example, he said the price jumps “if there are fewer bananas and the same number of people” competing to buy them.
Shapiro further noted that the tariff carveouts were substantial, given what the countries typically export. He said that 22.9% of Guatemala’s exports to the U.S. comprise bananas, while fruits and nuts make up 12.4% of Ecuador’s shipments to the nation.
As a result, Trump’s latest move is largely getting rid of the tariffs on these nations, with a significant portion of their exports now exempt.
“If you wish to lower prices, perhaps you should remove trade barriers on the countries that are going to supply you [with] cheaper and better products,” Shapiro said.
Trump’s Tariffs Resulting In Inflation
According to the latest data, Trump’s tariffs are fueling inflation, with the ISM Services Prices Index jumping to 70% in October, its highest level in three years.
Steve Miller, chair of the ISM Services Business Survey Committee, said, “Respondents continued to mention the impact of tariffs on prices paid.” Similarly, the ISM Manufacturing PMI surged to 58%, its 13th straight monthly increase, with executives surveyed placing the blame squarely on the tariffs.
Economist Peter Schiff has pushed back against Trump’s claims of having eliminated inflation, warning that the “average rate” under him would be worse than under former President Joe Biden.
According to Moody's Analytics Chief Economist Mark Zandi, “Inflation is uncomfortably high and is set to accelerate further in the coming months,” which he attributed to Trump’s trade and tariff policies.
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