Economist and longtime Trump adviser Stephen Moore joined Chicago’s Morning Answer with Dan Proft and Amy Jacobson to weigh in on trade, tax policy, manufacturing, and the future of the GOP. Moore, co-author of The Trump Economic Miracle and The Plan to Unleash Prosperity Again, warned against the economic dangers of steel tariffs and criticized the growing faction of “big-government conservatives” within the Republican Party.
Moore began by addressing the recent debate over steel imports, sparked by reports that Canada is now the largest supplier of steel to the U.S., selling $7.8 billion worth in 2024. While some in Washington call for increased tariffs, Moore argued that such protectionist policies hurt far more workers than they help. According to Moore, tariffs on steel and aluminum raise costs for automakers, construction firms, and manufacturers—ultimately undermining the competitiveness of American industry.
He pointed to the 2018 tariffs under Trump 1.0 as a cautionary tale. While the tariffs saved a few thousand jobs in the steel sector, studies found they led to an estimated 75,000 lost jobs across the broader manufacturing economy. Even the United Steelworkers union, typically aligned with protectionist measures, has pushed back against certain tariffs on Canadian imports, citing harm to workers on both sides of the border.
Moore emphasized that the solution lies not in picking winners and losers, but in across-the-board, revenue-generating tariffs if any are imposed—balanced by broader tax cuts. He criticized the current piecemeal approach as a “free-for-all” that encourages lobbying and political favoritism.
Turning to trade negotiations, Moore said he is cautiously optimistic that new trade deals, including a revised USMCA, will eventually come together. However, he expressed concern over the administration’s continued tensions with economic allies like Canada and Mexico, suggesting it’s unwise to antagonize friendly trading partners while the real threat, China, continues to manipulate markets and intellectual property.
On the domestic front, Moore highlighted recent improvements in economic confidence, noting that business leaders expect an extension of the 2017 Trump tax cuts and meaningful progress on the “BBB” tax and spending package. He estimated there’s an 85–90% chance the bill will pass, citing political survival as the key motivator for Republican lawmakers.
But Moore was sharply critical of the internal divisions emerging in the GOP. He took aim at populist Republicans like Senators Josh Hawley and JD Vance for supporting policies traditionally championed by the left, including a $15 federal minimum wage and opposition to Medicaid work requirements.
Moore warned that raising the minimum wage would backfire, especially for young and low-skill workers. “How is a 16-year-old in Chicago supposed to find a summer job when the minimum wage is $16.60?” he asked, pointing to the July 1 hike in the city. He called such policies “job killers” that price people out of the workforce, particularly in cities like Chicago with already-high unemployment and cost burdens.
Moore also expressed frustration with what he called “national conservatives”—a growing faction of Republicans advocating for protectionism, union expansion, and reduced labor flexibility. He predicted that the GOP faces an internal reckoning between pro-growth Reaganites and populists leaning into economic nationalism.
Finally, on a lighter note, Moore addressed reports of tension between Elon Musk and Donald Trump, brushing off the rumors as “alpha male theatrics” and predicting the two would eventually reconcile. Despite the media frenzy, Moore said it was a “tempest in a teapot” and noted Musk has already begun retweeting Trump’s statements again.
As the GOP navigates competing economic visions heading into 2026, Moore’s message was clear: prosperity depends on free markets, smart tax policy, and a rejection of politically convenient but economically harmful ideas.
Stephen Moore’s latest book, The Plan to Unleash Prosperity Again, is available now. He continues to serve as a senior economic adviser to conservative policy groups and frequently appears on Chicago’s Morning Answer for analysis on economic trends and legislation.