Jeremy Siegel Criticizes Trump Tariffs: 'Not Good Capitalism' and the 'Court of Donald Trump'

Jeremy Siegel calls Trump's tariffs 'not good capitalism' and says the 'court of Donald Trump' exemption system undermines free markets and fair trade.

Renowned economist Jeremy Siegel has sharply criticized President Trump's tariff policy, calling it "not good capitalism" and warning that the administration's exemption process — what he calls the "court of Donald Trump" — damages free markets.

Siegel, a respected voice on markets and trade, argues that using tariffs broadly and then granting selective exemptions creates uncertainty and favoritism. Instead of predictable, rules-based trade policy, firms face an unpredictable system where access to exemptions can depend on political influence rather than market logic. That unpredictability, Siegel says, undermines investor confidence and distorts competition.

The debate over Trump tariffs has centered on national security and protecting domestic industries. But Siegel emphasizes the broader economic consequences: higher input costs for U.S. manufacturers, increased consumer prices, and fractured supply chains. When exemptions are granted inconsistently, companies that cannot secure them face competitive disadvantages, prompting market inefficiencies and fewer incentives for innovation.

Siegel’s critique ties into a larger conversation about capitalism and trade policy. Free markets depend on transparent rules, stable expectations, and equal treatment for businesses. A system that resembles a "court of Donald Trump" for tariff exemptions, he warns, substitutes ad hoc decision-making for predictable governance. The result is not only ideological tension with free-market principles but practical harm to economic growth and market stability.

For investors and consumers, the implications are clear: policy uncertainty can translate into volatile markets and higher prices. For policymakers, Siegel’s comments are a reminder that trade measures intended to protect certain industries must be designed and administered carefully to avoid creating loopholes that reward political connections.

Whether you follow this issue as an investor, business leader, or concerned citizen, Siegel’s assessment underscores the importance of transparent, consistent trade policy. If the goal is to strengthen American industry without undermining capitalism, reforms should focus on predictable rules, fair exemption processes, and a commitment to market-based solutions rather than discretionary, politically driven decisions.

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