CNBC’s Steve Liesman expressed strong criticism of President Trump’s recent tariff proposals, calling them "insane" during a live broadcast. This outburst came after Trump threatened to raise tariffs on aluminum and steel imports from Canada to 50% unless the country agreed to become the "51st state." Liesman, who is CNBC’s senior economics reporter, made these remarks while speaking with anchor Kelly Evans.
Liesman argued that Trump’s approach to tariffs has become increasingly erratic. He pointed out that this was just one of many reasons cited for imposing tariffs. "It is about the eighth reason we’ve had for the tariffs," Liesman said, adding that the president’s suggestion to make Canada a state was particularly outrageous.
Earlier that day, Trump had posted on Truth Social, stating he would double tariffs on Canadian steel and aluminum and increase taxes on car imports to potentially cripple Canada’s automobile industry. He claimed that making Canada a state would eliminate all tariffs and other trade issues.
Despite Trump’s threats, the tariffs on aluminum and steel had already been set to take effect at a 25% rate. Liesman referenced an opinion piece from the Wall Street Journal that warned hefty tariffs could negatively impact U.S. stocks. He agreed with the article’s argument, stating that the U.S. needs significant foreign capital to support its economy, and current policies might drive that capital away.
Liesman also noted that Trump’s current administration seems less restrained compared to his first term, suggesting a lack of moderating voices around the president. He raised concerns about how the administration is handling constitutional and legal matters.
Evans, attempting to lighten the mood, joked about "insanity as a strategy." Liesman quickly dismissed the idea, insisting that "insanity is not a strategy." His passionate critique highlights the growing tensions surrounding Trump’s trade policies and their potential implications for the U.S. economy.