President Donald Trump's proposed tariffs on steel and aluminum imports are "straight up stupid," a top economist told CNBC on Friday.
Trump's tariffs announcement Thursday night has been broadly condemned by both sides of the U.S. political spectrum and the international community at large.
"This is just straight up stupid," Adam Posen, president of the Peterson Institution for International Economics, said Friday. "This is fundamentally incompetent, corrupt or misguided."
Posen, who served at the Federal Reserve Bank of New York in the mid-1990s, currently sits on the panel of economic advisors to the U.S. Congressional Budget Office.
The president's protectionist move, which would impose a 25 percent levy on all steel imports and 10 percent on aluminum, has garnered widespread criticism, with trade partners of the U.S. already threatening to retaliate. Downstream producers of steel and aluminum products — including car, plane and consumer goods manufacturers — say it will jack up their costs, and experts fear a trade war that could harm global growth.
The Dow promptly tanked more than 400 points on Thursday trading. U.S. automaker and plane manufacturer stocks closed sharply lower, and metals producers in Europe and Asia saw losses on Friday morning's market open.