Stiglitz Warns Trump Tariffs Threaten US Economy, Labor Market, and Global Growth

Nobel Prize–winning economist Joseph Stiglitz has sharply criticized former President Donald Trump’s tariff policies, warning that the resulting decline in blue-collar jobs poses a major threat to the U.S. Economy and global economic stability.

Stiglitz stated that manufacturing jobs fell by more than 100,000 in the past year, with a Joint Economic Committee analysis showing 108,000 fewer manufacturing positions—nearly double the 59,000 job loss estimated by the Bureau of Labor Statistics in November 2024. When including construction, mining, and warehousing, total blue-collar job losses reached 166,000 from February 2025 to February 2026.

He argued that Trump’s tariffs failed to revive manufacturing as promised, instead contributing to job losses while failing to address broader economic challenges. “Do you know what happened to jobs in manufacturing in the last year? They’re down,” Stiglitz said in a CNBC interview. “[Trump] didn’t succeed over the last year in bringing back manufacturing jobs.”

Stiglitz contrasted the decline in blue-collar employment with growth in the healthcare sector, which he attributed to demographic trends rather than trade policy. “And you look at, where is the increase in jobs in the United States—health care. Does that have anything to do with the tariffs? No,” he noted, emphasizing that healthcare expansion stems from an aging population, not tariff-driven industrial revival.

The economist warned that the erosion of blue-collar work affects not only manufacturing but also related industries, including technology and infrastructure. He cited concerns from business leaders such as Ford CEO Jim Farley, who warned that shortages of blue-collar workers could impede data center construction and broader tech industry development.

Stiglitz further contended that tariffs are exacerbating inflation and slowing economic growth, despite recent cooling in consumer price index data. He described the current economic outlook as “not great right now” and warned that prospects are likely to deteriorate without policy correction.

His remarks come amid ongoing debate over the long-term impact of Trump’s trade policies, particularly the so-called “Liberation Day” tariffs implemented one year prior, which economists continue to assess for their effects on employment, inflation, and global supply chains.