Understanding Tariffs and Their Economic Impact

Donald Trump blinked, as many people suspected he would. This week, he reduced the embargo-level tariffs he imposed on China a month ago, and did so unilaterally. So in exchange for a month-long crisis, a still-looming supply shortage, lost jobs, and lost wealth, we got nothing! But Trump’s supporters are all too ready to cover for him.

In this episode, Matt and Brian discuss:

* What does Trump’s reversal mean for the economy in the near and medium term?

* Will his army of propagandists be able to sell his flailing as a “win,” and, thus, blunt the political consequences of his economic mismanagement?

* Would Democrats be better off if their grassroots were similarly cult like, or is Trump’s “superpower” actually a big weakness, both for the GOP and the country?

Then, behind the paywall, how should Democrats think about the damage Trump is doing, not just in the trade realm but across government? It’s (apparently) easy to tweak tariff rates, but much harder to convince trading partners that we’re trustworthy. Could this be a basis for Democratic opposition? Should Democrats unify behind a general promise to reconstitute the government Trump broke, and rebuild global faith in the United States? Or are technical questions surrounding how to rebuild destined to leave the party mired in infighting?

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Further reading:

* Brian argues it’s counterproductive to wallow in the fact that building things is harder than breaking them, and that Dems should adopt a posture of resolve and defiance.

* Matt on Trump rediscovering the virtues of the Trans-Pacific Partnership, and how he succeeds politically by claiming credit for renegotiating shittier versions of deals he broke in the past.

* Adam Serwer: “The Coronavirus Was an Emergency Until Trump Found Out Who Was Dying.”