Former Federal Reserve Chairman Alan Greenspan appeared on Fox Business Network’s Mornings With Maria on Thursday, saying tariffs are essentially a tax.

Greenspan spoke at length about the economic impact of the Trump administration’s trade negotiation strategy.

“Remember what tariffs are – they are essentially a tax. Like an excise tax,” Greenspan said. “And when imposed, they withdraw purchasing power from the economy. And when we are looking at the types of tariffs that the administration is suggesting, that does not bode well for the future.”

He added there is a mistaken view that “somehow when we have a significant merchandise trade deficit say for example with China, they are doing something that is undercutting us.”

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