The Economics Show The ugly truth about Trump’s ‘beautiful tariffs’. With Martha Gimbel
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Sep 19, 2025 
Martha Gimbel, Executive Director of Yale's Budget Lab and former White House adviser, joins to dissect Trump's ambitious tariff plans. They discuss how tariffs, once vital for US funding, are now back in focus but bring baggage. Gimbel highlights the balance between revenue generation and economic drawbacks. The conversation delves into the legal challenges, the pressures on the labor market, and the lasting impacts tariffs may have until 2029. Tune in for a thought-provoking take on a hot-button issue!
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Tariffs Are As Much Preference As Policy
- Tariffs are being used for multiple rationales but the president personally likes them and negotiates with them.
- Tariffs generate revenue but are likely to slow growth and cost jobs according to Martha Gimbel.
Revenue Ramps But Remains Modest
- Effective tariff collections started lower than headline rates because importers adjust declarations, reroute or evade.
- Tariff revenue is rising and meaningful but remains small relative to income and corporate taxes.
Smuggling And Modern Evasion Examples
- Martha mentions historical smuggling and modern allegations like Whirlpool's claim about competitors evading tariffs.
- These examples illustrate how importers and firms can try to sidestep tariff rules.