Trump Tariffs Could Hurt the Economy but a Border Adjustment Tax Could Make Sense, Says Analyst

President Trump had a "remarkable" first week in office, making good on campaign promises with a flurry of activity, according to Douglas Holtz-Eakin, president of the American Action Forum, a center-right policy institute. Holtz-Eakin says the most notable development has been Trump's actions on trade.

Holtz-Eakin, who formerly ran the Congressional Budget Office, is cautious regarding Trump's talk of imposing tariffs.

"Those kind of unilateral actions usually damage economic performance," said Holtz-Eakin. "They will slow the growth of the economy and they run the risk of retaliatory actions on the part of the other countries.  Most economists are nervous about that."

But Holtz-Eakin says a border adjustment tax could be sensible and would likely not have a negative impact.