Trump’s tariff agenda is hard on business forecasting and investment: Former commerce secretary

May 1, 2026 - 00:11

Former U.S. Secretary of Commerce Gina Raimondo warned that President Donald Trump's unpredictable tariff agenda is making it nearly impossible for companies to forecast costs and commit to long-term investments. Speaking on "The Claman Countdown," Raimondo argued that the lack of clear, consistent trade policy is creating a damaging environment for American businesses.

Raimondo, who served under the Biden administration, stated that tariffs can be a useful tool when applied strategically, but the current approach feels erratic. She noted that businesses rely on stability to make decisions about hiring, expanding factories, and ordering supplies. When tariff rates change without warning or clear justification, companies freeze their spending. They cannot calculate the price of imported steel, electronics, or machinery from one quarter to the next.

This uncertainty, she explained, directly hurts the economy. Instead of building new facilities or increasing research budgets, firms are hoarding cash and waiting for clarity. Raimondo emphasized that the goal of protecting American industry is valid, but the method must be predictable. Without a steady roadmap, the risk of a slowdown in capital investment grows.

She also pointed out that trading partners are reacting with their own retaliatory measures, which further complicates supply chains. The former secretary concluded that while the administration's intent may be to boost domestic manufacturing, the current volatility is having the opposite effect, scaring off the very investment needed to achieve that goal.